M/S.prasad Productions P. Ltd v. The Joint Commissioner Ofincome Tax,Media Range-I,Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 18.09.2018 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.1497 of 2008 M/s.Prasad Productions P. Ltd.,28, Arunachalam Road,Saligramam,Chennai-600 093 .... Appellant -vs- The Joint Commissioner ofIncome Tax,Media Range-I,Chennai. ... Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of theIncome Tax Appellate Tribunal Madras 'B' Bench, dated 7.12.2007 in ITA No.2027/Mds/2006 for theAssessment year 2002-03. For Appellant : Mr.V.Vikram forMr.R.Venkatanarayanan For Respondent : Mr.M.Swaminathan forMrs.S.Premalatha J U D G M E N T[Judgement of the Court was delivered by T.S.Sivagnanam, J.] This appeal is filed by the assessee against the order passed by the Income Tax Appellate Tribunal,Madras 'B' Bench, dated 7.12.2007 in ITA No.2027/Mds/2006 for the Assessment year 2002-03. 2.Heard Mr.V.Vikram, Learned Counsel for the appellant and Mr.M.Swaminathan, Learned Counselfor the Revenue. 3.This Appeal has been admitted on 26.09.2008, on the following Substantial Questions of Law:"1.Whether on the facts and circumstances of the case, the Tribunal was right in law in holding thatthe appellant is not entitled to deduction under Section 80IA of the Act in respect of windmill unit?2.Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holdingthat for the purpose of computing deduction under Section 80IA of the Act, the profits of thewindmill unit have to be computed for any assessment year as if it were the only source of incomefor the assessee and the earlier year's losses have to be taken into consideration for computing theprofit of the current assessment year irrespective of the fact that the said loss have already been setoff against the profits of other units in earlier years?� 4.The above referred Substantial Questions of Law were considered by the Division Bench of thisCourt in the assessee's own case for the earlier Assessment Year in T.C.A.No.524 of 2008, dated25.02.2015, in Prasad Productions P.Ltd. vs. Deputy Commissioner of Income Tax [reported in(2015) 92 CCH 0097 ChenHC] and decided in favour of the assessee. The operative portion of thejudgement reads as follows: �8.The facts in the present case are also identical to the above-said decision of this Court that all thebusiness undertakings are wind mills and they have claimed the benefit of deduction under Section80IA of the Income Tax Act for the assessment years in question and the for subsequent year as well.Having exercised their option and their losses have been set off already against other income of thebusiness enterprise, the assessee in this appeal falls within the parameters of Section 80IA of theIncome Tax Act. In the decision reported in (2012) 340 ITR 477 (Velayudhaswamy Spinning Mills v.Asst. CIT), there appears to be no distinction on facts. 9.Again in a batch of cases in T.C.(A) Nos.408 of 2012, by order dated 12.01.2015, this Court,following the decision reported in (2012) 340 ITR 477 (Velayudhaswamy Spinning Mills v. Asst.CIT)held in favour of the assessee and against the Revenue. 10.We, therefore, taking note of the decision rendered by this Court in the case of VelayudhasamySpinning Mills (supra) and in a batch of cases in T.C.(A) Nos.408 of 2012, are inclined to allow thisTax Case (Appeal), thereby set aside the order passed by the Tribunal. 11.In view of the above, the question of law is answered in favour of the assessee and against theRevenue. This Tax Case (Appeal) stands allowed. No costs.� 5.Following the above decision, this Appeal, filed by the assessee, is allowed and the SubstantialQuestions of Law are answered in favour of the assessee. No costs. [T.S.S., J.] & [V.B.S., J.]18.09.2018 msk Index:Yes/No Internet:Yes/No To 1.Income Tax Appellate Tribunal Madras 'B' Bench.2.The Joint Commissioner ofIncome Tax,Media Range-I,Chennai. T.S.Sivagnanam, J. and V.Bhavani Subbaroyan, J. msk T.C.A.No.1497 of 2008 11.In view of the above, the question of law is answered in favour of the assessee and against theRevenue. This Tax Case (Appeal) stands allowed. No costs.� 5.Following the above decision, this Appeal, filed by the assessee, is allowed and the SubstantialQuestions of Law are answered in favour of the assessee. No costs. [T.S.S., J.] & [V.B.S., J.]18.09.2018 msk Index:Yes/No Internet:Yes/No To 1.Income Tax Appellate Tribunal Madras 'B' Bench.2.The Joint Commissioner ofIncome Tax,Media Range-I,Chennai. T.S.Sivagnanam, J. and V.Bhavani Subbaroyan, J. msk T.C.A.No.1497 of 2008 18.09.2018