Tca/408/2012 Of Commissioner Of Income Tax v. M/S Eastman Exports Global

In the High Court of Judicature at MadrasDated: 12.01.2015 Coram The Honourable Mr.JUSTICE R.SUDHAKARandThe Honourable Mr.JUSTICE R.KARUPPIAH Tax Case (Appeal) Nos.408, 409 of 2012, 17, 533, 534, 535, 593,594, 965,of 2013, 108, 121, 197, 221, 264, 265, 307, 308, 699 to713, 748, 868, 923, 1000 and 1015 of 2014and connected Miscellaneous Petitions THE COMMISSIONER OF INCOME TAX,COIMBATORE...PETITIONER IN TCA.408, 409 OF 2012AND 699, 700, 701, 702, 703, 704,705, 706, 707, 708, 709, 710, 711,712, 713 OF 2014.PETITIONER IN TCA.533, 534, 535, 593,594 OF 2013, 108, 121, 197, 264, 265OF 2014. THE COMMISSIONER OF INCOME TAX,CIRCLE I, TIRUPPUR...PETITIONER IN TCA.748, 868, 923,1000, 1015 OF 2014. THE COMMISSIONER OF INCOME TAX,CHENNAI...PETITIONER IN TCA.17/13965/13, 221/14, 307/14, 308/14.-Vs- M/S.EASTMAN EXPORTS GLOBAL CLOTHING P. LTD.,10-12, KUMAR NAGAR SOUTH II STREET,TIRUPPUR...RESPONDENT IN TCA.408/12. M/S.EASTMAN SPINNING MILLS [P] LTD.,16/17, KUMAR NAGAR SOUTH, TIRUPPUR...RESPONDENT IN TCA.409/12. M/S.MSK CONSTRUCTION P. LTD.,A-2, 75 UMA SHANTHI RESIDENCY HABIBULLAH ROAD,T.NAGAR, CHENNAI 17...RESPONDENT IN TCA.17/13. M/S.EVERREADY SPINNING MILLSP. LTD., 23, JOTHI THEATRE ROAD,TIRUPPUR...RESPONDENT IN TCA.NO.533, 534 OF 2013, 701 OF 2014. https://hcservices.ecourts.gov.in/hcservices/ M/S.EMERALD JEWEL INDUSTRY [P]. LTD.,333, 2 FLOOR, BIG BAZAAR STREET,COIMBATORE...RESPONDENT IN TCA.535/13M/S.GVG PAPER MILLS LTD.,168/2, KIKANDHAR BATCH ST. GANDHI NAGAR, UDUMALPET 642 154...RESPONDENT IN TCA.593, 594/13.M/S.SAHUWALA FLOUR MILLS LTD.,56 NEW NO.27, NAMIAH MAISTRY STREET,CHENNAI 81...RESPONDENT IN TCA.965/13.SHRI C.CHANDRAMOHANNO.7, COTTON MILL STREET,P.N.RD., TIRUPPUR...RESPONDENT IN TCA.108/14.M/S.VIKING KNITTERS 505,AVINASHI ROAD,TIRUPPUR...RESPONDENT IN TCA.121, 707/14.M/S.VIKING TEXTILE [P] LTD.,505, AVINASHI ROAD, TIRUPPUR...RESPONDENT IN TCA.197/14.M/S.PROTECTRON ELECTROMECH PVT.LTD.,9, ATHIPATTAN STREET, MOUNT ROAD,CHENNAI 1...RESPONDENT IN TCA.221/14.M/S.DEFREE ENGINEERING P. LTD.,S.F.No.125/2B, AVINASHI ROAD,NEELAMBUR POST, COIMBATORE 14...RESPONDENT IN TCA.264/14.M/S.PUKANI TEXTILES P. LTD.,1239 INDIA HOUSE TRICHY ROAD,COIMBATORE 641 018...RESPONDENT IN TCA.265/14M/S.PROTRECTRON ELECTROMECH PVT. LTD.,9, ATHIPATTAN STREET, MOUNT ROAD, CHENNAI 1...RESPONDENT IN TCA.307/14,308/14.M/S.VEDHA SPINNING MILLS P. LTD., 207/86, MANGALAM ROAD,KARUVAMPALAYAM, TIRUPPUR...RESPONDENT IN TCA.699/13.M/S.VELAYUTHASWAMY SPINNING MILLSP. LTD., 20/86, MANGALAM ROAD, KARUVAMPALAYAM, TIRUPPUR...RESPONDENT IN TCA.700/14. M/S.ADISANKARA SPINNING MILLS P. LTD.,https://hcservices.ecourts.gov.in/hcservices/207/86, MANGALAM ROAD,KARUVAMPALAYAM, TIRUPPUR. ..RESPONDENT IN TCA.702/14. M/S.CHERAN SPINNING MILLS P. LTD.,20, DHARAPURAM ROAD, THILLAI NAGAR,TIRUPPUR...RESPONDENT IN TCA.703/14.M/S.PANDIAN SPINNING MILLS P. LTD.,20, DHARAPURAM ROAD, THILLAI NAGAR,TIRUPPUR...RESPONDENT IN TCA.704/14.M/S.CHOLA SPINNING MILLS P. LTD.,20, DHARAPURAM ROAD, THILLAI NAGAR,TIRUPPUR...RESPONDENT IN TCA.705/14.M/S.PRABHU SPINNING MILLS P. LTD.,207/86, MANGALAM ROAD, KARUVAMPALAYAM, TIRUPPUR...RESPONDENT IN TCA.706/14.M/S.SIVARAJ SPINNING MILLS P. LTD.,207/86, MANGALAM ROAD, KARUVAMPALAYAM, TIRUPPUR...RESPONDENT IN TCA.708/14.M/S.SRI MATHA SPINNING MILLS P. LTD.,207/86, MANGALAM ROAD, KARUVAMPALAYAM, TIRUPPUR...RESPONDENT IN TCA.709/14. M/S.JAYAVARMA TEXTILES P. LTD.,SF NO.237/1, P.N.ROAD, SAKTHI NAGAR NORTH, TIRUPPUR. ..RESPONDENT IN TCA.710/14. M/S.SUDHAN SPINNING MILLS P. LTD.,207/86, MANGALAM ROAD, KARUVAMPALAYAM,TIRUPPUR...RESPONDENT IN TCA.711/14.M/S.SHANMUGAVEL SPINNING MILLS P. LTD.,207/86, MANGALAM ROAD, KARUVAMPALAYAM,TIRUPPUR...RESPONDENT IN TCA.712/14. M/S.VIKING KNITTERS,4 VOC NAGAR, 1 STREET, GANDHI NAGAR PO,TIRUPPUR...RESPONDENT IN TCA.713/14.P.K.GANESHWAR21, POLLACHI ROAD, PALLADAM, TIRUPPUR 641 664...RESPONDENT IN TCA.748/14. M/S.JAYAVARMA TEXTILES P. LTD.,SF NO.237/1, P.N.ROAD, SAKTHI NAGAR NORTH, TIRUPPUR. ..RESPONDENT IN TCA.710/14. M/S.SUDHAN SPINNING MILLS P. LTD.,207/86, MANGALAM ROAD, KARUVAMPALAYAM,TIRUPPUR...RESPONDENT IN TCA.711/14.M/S.SHANMUGAVEL SPINNING MILLS P. LTD.,207/86, MANGALAM ROAD, KARUVAMPALAYAM,TIRUPPUR...RESPONDENT IN TCA.712/14. M/S.VIKING KNITTERS,4 VOC NAGAR, 1 STREET, GANDHI NAGAR PO,TIRUPPUR...RESPONDENT IN TCA.713/14.P.K.GANESHWAR21, POLLACHI ROAD, PALLADAM, TIRUPPUR 641 664...RESPONDENT IN TCA.748/14. M/S.GANGAI GARMENTS,217/1, GANGAI GARDENS KAVILPALAYAM ROAD,SIRUPOOVALPATTI, TIRUPPUR...RESPONDENT IN TCA.868/14.M/S.BALU EXPRORTS,60, A-5, PALLADAM ROAD, ARULPURAM, TIRUPPUR...RESPONDENT IN TCA.923/14. https://hcservices.ecourts.gov.in/hcservices/ SRI A.P.DHANDAPANI330/12, GOKULAKRISHNA NAGAR,RBS ALAMELU MAHAL,PALLADAM, TIRUPPUR...RESPONDENT IN TCA.1000/14.M/S.PRABHATH MILLSARUL INDUSTRIAL ESTATE ARULPURAM PALLADAM ROAD, TIRUPPUR 641 605 ..RESPONDENT IN TCA.1015 OF 2014. Prayer in TC[A].Nos.408, 409/12:Appeals under Section 260 A of the Income Tax Act against theorder dated 2.5.2012 made in I.T.A.Nos.301, 302,/Mds/2012 on thefile of the Income Tax Appellate Tribunal ‘A’ Bench, Chennai forthe Assessment years 2007-08, against the order of the Commissionerof Income Tax [A] II, ITA.No.449/09-10, 563/09-10 dated 25.10.2011for the Assessment years 2007-2008 preferred against the order ofDeputy Commissioner of Income Tax, Tiruppur dated 18.12.2009 dated11.12.2009 made in PAN.Nos.AACCC095QE, for theAssessment years 2007-2008 respectively. Prayer in TC[A].No.17/2013. Income Tax Appeal No.17/2013 filed under Section 260 A ofIncome Tax Act, 1961, against the order of the Income Tax AppellateTribunal, ‘D’ Bench, Chennai dated 10/07/12 made inITA.No.845/Mds/2012 for the Assessment year 2008-2009 against theorder of Commissioner of Income Tax [Appeals V], Chennai dated27.1.2012 made in ITA.No.141/2010-11 for the Assessment year 2008-09 against the order of Assistant Commissioner of Income Tax,Company Circle IV [3] I/C, Chennai dated 20.12.2010, made inPAN.G.I.No.AAACM2608R/Ms-13. Prayer in TC[A].Nos.533, 534/13: Appeals under Section 260 A of the Income Tax Act, 1961against the common order of Income Tax Appellate Tribunal ‘B’Bench, Chennai ‘B’ Bench, Chennai dated 5/1/2012 made inITA.Nos.1774, 1775/Mds/2011 for the Assessment years 2007-08, 2008-09 against Commissioner of Income Tax Appeals, Coimbatore dated21.7.2011 and 10.07.2011 made in ITA.478/09-10, and 2/10-11 for theAssessment years 2007-08, 2008-09 against the order of theAdditional Commissioner of Income Tax Tiruppur Range, Tiruppurdated 31.3.2010, made in PAN.No. for the assessment year2008-09 also the order of Deputy Commissioner of Income Tax CompanyCircle, Tiruppur dated 24.12.2009 made in PAN.GIR.No. ,for the Assessment years 2007-2008 respectively. Prayer in TC[A].535/13: Income Tax Appeal filed under Section 260-A of the Income Tax,1961 against the order of the Income Tax Appellate Tribunal Madras‘B’ Bench dated 19.3.2012 made in ITA.Nos.1635/Mds/2011, for thehttps://hcservices.ecourts.gov.in/hcservices/assessment years 2008-09 against the order of the commissioner ofIncome Tax [Appeals], Coimbatore dated 19.7.2011 in ITA.No.302/10- 11 for the assessment year 2008-09 against the order of DeputyCommissioner of Income Tax, Company Circle 1[3] Coimbatore dated27.12.2010 made in PAN.GIR.No. for the Assessment year2008-09. Prayer in TC.[A].Nos.593, 594/13: Prayer in TC[A].535/13: Income Tax Appeal filed under Section 260-A of the Income Tax,1961 against the order of the Income Tax Appellate Tribunal Madras‘B’ Bench dated 19.3.2012 made in ITA.Nos.1635/Mds/2011, for thehttps://hcservices.ecourts.gov.in/hcservices/assessment years 2008-09 against the order of the commissioner ofIncome Tax [Appeals], Coimbatore dated 19.7.2011 in ITA.No.302/10- 11 for the assessment year 2008-09 against the order of DeputyCommissioner of Income Tax, Company Circle 1[3] Coimbatore dated27.12.2010 made in PAN.GIR.No. for the Assessment year2008-09. Prayer in TC.[A].Nos.593, 594/13: TC[A].Nos.593, 594/13 filed under Section 260-A of the IncomeTax Act, 1961 against the common order of the Income Tax AppellateTribunal ‘A’ Bench, Chennai dated 13/1/12 made in ITA.Nos.854,856/Mds/11 for the Assessment years 2007-08 and 2003-04 against theorder of Commissioner of Income Tax Appeals II, Coimbatore dated15.2.2011 made in ITA.18/09-10 for the assessment year 2007-08 andalso Commissioner of Income Tax Appeals II, Coimbatore dated2.5.2007 made in ITA.No.71-C/06-07 for the Assessment year 2003-04and against the order of the Asst. Commissioner of Income Tax,Coimbatore dated 17/8/2009 and 28/3/2006 made in PAN.No.AABCG1438Nand PAN No.AAABCG1438N for the Assessment years 2007-08, 2003-04respectively. Prayer in TC[A].965/13:Income Tax[A].965/13 filed under Section 260-A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal Madras ‘D’ Bench dated 25/6/2013, Chennai made inITA.No.681/Mds/2013 for the Assessment Years 2009-10, against theorder of the Commissioner of Income Tax [A] , Chennai 34 dated21/12/12 made in ITA.157/11-12 for the Assessment year 2009-10against the order of the Assistant Commissioner of Income Tax,Business Circle VII, Chennai dated 30.12.2011 made inPAN.GIR.No.AABFS8827N for the Assessment year 2009-10. Prayer in TC[A].No.108/2014:TC[A].No.108/2014 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘C’ Bench, Chennai dated 24.1.2013 made in ITA.Nos.1940/Mds/2012for the Assessment years 2009-10 against the order of theCommissioner of Income Tax Appeals made in ITA.No.209/1172 for theAssessment year 2009-10 dated 27.7.2012 against the order of theJoint Commissioner of Income Tax, Tiruppur Range dated 29.12.2011made in PAN.GIR.No. , for the Assessment year 2009-10. Prayer in TC.[A].121/14 :TC[A].No.121/2014 filed under Section 260-A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal ‘D’Bench, Chennai dated 29/8/2013 made in ITA.No.605/Mds/2013 for theAssessment year 2009-10 against the order of the Commissioner ofthe Income Tax Appeals II, Coimbatore dated 30.1.2013 made inITA.No.214/11-12 for the Assessment year 2009-10 against the orderof the Joint Commissioner of Income Tax, Tiruppur dated 27.12.2001made in PAN.GIR. , for the Assessment year 2009-10. Prayer in TC[A].No.197/2014 : TC[A].No.197/2014 filed under Section 260-A of the Income Taxhttps://hcservices.ecourts.gov.in/hcservices/Act, 1961 against the order of the Income Tax Appellate Tribunal‘D’ Bench, Chennai dated 29.8.2013 made in ITA.No.604/Mds/2013 for the Assessment years 2009-10 against the order of the Commissionerof Income Tax Appeals II, Coimbatore dated 30.1.2013 made inIRA.No.210/11-12 for the Assessment year 2009-10 against the orderof the Joint Commissioner of Income Tax Tiruppur range dated28.12.2011 made in PAN/GIR/No. for the Assessment year2009-10. Prayer in TC[A].No.197/2014 : TC[A].No.197/2014 filed under Section 260-A of the Income Taxhttps://hcservices.ecourts.gov.in/hcservices/Act, 1961 against the order of the Income Tax Appellate Tribunal‘D’ Bench, Chennai dated 29.8.2013 made in ITA.No.604/Mds/2013 for the Assessment years 2009-10 against the order of the Commissionerof Income Tax Appeals II, Coimbatore dated 30.1.2013 made inIRA.No.210/11-12 for the Assessment year 2009-10 against the orderof the Joint Commissioner of Income Tax Tiruppur range dated28.12.2011 made in PAN/GIR/No. for the Assessment year2009-10. Prayer in TC[A].No.221/2014 :TC[A].No.221/2014 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate TribunalChennai dated 11.4.2013 made in ITA.No.157/Mds/2013 for theAssessment year 2009-10 against the order of the Commissioner ofIncome Tax [Appeals] V, Chennai dated 31.10.2012 made inITA.No.366/2011-12 for the Assessment year 2009-10 against order ofIncome Tax, Company Circle V[2] Chennai dated 22/12/2011 made inPAN.No.AABCP1103B, for the Assessment year 2009-10. Prayer in TC[A].No.264/2014 :TC[A].No.264/2014 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal,Chennai dated 6/11/2013 made in ITA.Nos.1721/Mds/2013 for theassessment year 2010-11 against the order of the commissioner ofIncome Tax [Appeals] 1, Coimbatore dated 27/06/2013 made in AppealNO.116/12-13 against the order of Order of Deputy Commissioner ofIncome tax, company Circle – 1[1] Coimbatore dated 16/1/2013 madein PAN/GIR.No. , for the assessment year 2010-11. Prayer in TC[A].No.265/2014 :TC[A].No.265/2014 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘C’ Bench, Chennai dated 6.11.13 made in ITA.No.1722 / Mds/2013 forthe Assessment years 2001-11 against the order of the Commissionerof Income Tax [A], Coimbatore dated 31.5.2015 made in Appeal No.125/ 12-13 for the Assessment years 2010-11 against the order ofAssistant Commissioner of Income Tax, Company Circle 1[1],Coimbatore dated 31.12.12 made in PAN/GIR/No. , for theAssessment years 2010-11. Prayer in TC[A].No.307, 308/14: TC[A].Nos.307, 308/14 filed under Section 260-A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal ‘D’ Bench, Chennai dated 23.1.2013 made in ITA.Nos.543,544/Mds/2012 for the Assessment years 2003-04 and 2008-09 againstorder of the Commissioner of Income Tax Appeals, Chennai dated29.12.2011 and 30.12.2011 made in ITA.Nos.324/10-11, 326/10-11 forthe Assessment years 2008-09 and 2003-2004 against the order of theAssistant Commissioner of Income tax Company Circle V[2] Chennaidated 31.12.2010 made in PAN.GIR No. for the Assessmentyears 2003-04, 2008-09 respectively. Prayer in TC[A].No.699/14 TC[A].No.699/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunalhttps://hcservices.ecourts.gov.in/hcservices/‘A’ Bench, Chennai dated 12.2.2013 made in ITA.No.1842/Mds/2013,for the Assessment years 2010-2011 against the Order of the Commissioner of Income Tax Appeals II, COimbatore dated 31.7.2013made in ITA.No.33/13-14 for the Assessment year 2010-11, againstthe order of the Deputy Commissioner of Income Tax, company Circle,Tiruppur dated 15/3/2013 made in PAN/GIR.No. for theAssessment years 2010-11. Prayer in TC[A].No.699/14 TC[A].No.699/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunalhttps://hcservices.ecourts.gov.in/hcservices/‘A’ Bench, Chennai dated 12.2.2013 made in ITA.No.1842/Mds/2013,for the Assessment years 2010-2011 against the Order of the Commissioner of Income Tax Appeals II, COimbatore dated 31.7.2013made in ITA.No.33/13-14 for the Assessment year 2010-11, againstthe order of the Deputy Commissioner of Income Tax, company Circle,Tiruppur dated 15/3/2013 made in PAN/GIR.No. for theAssessment years 2010-11. Prayer in TC[A].No.700/14TC[A].No.700/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 12.2.2014 made in 1843/Mds/2013 for theAssessment year 2010-11 against the order of the Commissioner ofIncome Tax Appeals II, Coimbatore dated 31.7.2013 made inITA.No.32/13-14 for the Assessment years 2010-11 against the orderof the Deputy Commissioner of Income Tax, Company Circle, Tiruppurdated 15.3.2013 made in PAN/GIR.No. for the Assessmentyears 2010-11. Prayer in TC[A].No.701/14 TC[A].No.701/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 12.2.2014 made in ITA.No.1844/Mds/2013 forthe Assessment years 2010-11 against the order of the Commissionerof Income Tax [Appeals] II, Coimbatore dated 31.7.2013 made inITA.Nos.111/13-14 for the Assessment year 2010-11 against the orderof the Deputy Commissioner of Income Tax, Company Circle, Tiruppurdated 15/3/2013 made in PAN.GIR.No. for the Assessmentyear 2010-11. Prayer in TC[A].No.702/14TC[A].No.702/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 12/02/2014 made in ITA.No.1845/Mds/2013for the Assessment year 2010-11 against the order of theCommissioner of Income Tax Appeals II, Coimbatore dated 31.7.2013made in ITA.No.26/13-14 for the Assessment year 2010-11 against theorder of the Deputy Commissioner of Income Tax Company Circle,Tiruppur dated 15.3.2013 made in PAN.GIR.No. for theAssessment year 2010-11. Prayer in TC[A].No.703/14TC[A].No.702/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Madras ‘A’ Bench, dated 12/02/2014 made inITA.No.1846/Mds/2013, for the Assessment year 2010-11 against theorder of the Commissioner of Income Tax [Appeals] –II, Coimbatoredated 31.7.2013 made in ITA.No.28/13-14 for the assessment year2010-11, against the order of the Deputy Commissioner of IncomeTax, Company Circle Tiruppur dated 15.3.2013 made inPAN/GIR.No.AAACC8788L, for the Assessment year 2010-11. Prayer in TC[A].No.704/14 TC[A].No.702/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunalhttps://hcservices.ecourts.gov.in/hcservices/Madras ‘A’ Bench, dated 12.2.2014 made in ITA.No.1847/Mds/2013 forthe Assessment year 2010-11 against order of the Commissioner of Income Tax Appeals II, Coimbatore dated 31.7.2013, made inITA.No.108/13-14, for the Assessment year 2010-11 against theorder of the Deputy Commissioner of Income Tax, Company Circle,Tiruppur dated 15.3.2013 made in PAN/GIR.No. , for theAssessment year 2010-11. Prayer in TC[A].No.704/14 TC[A].No.702/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunalhttps://hcservices.ecourts.gov.in/hcservices/Madras ‘A’ Bench, dated 12.2.2014 made in ITA.No.1847/Mds/2013 forthe Assessment year 2010-11 against order of the Commissioner of Income Tax Appeals II, Coimbatore dated 31.7.2013, made inITA.No.108/13-14, for the Assessment year 2010-11 against theorder of the Deputy Commissioner of Income Tax, Company Circle,Tiruppur dated 15.3.2013 made in PAN/GIR.No. , for theAssessment year 2010-11. Prayer in TC[A].No.705/14Prayer in TC[A].No.705/14 filed under Section 260-A of theIncome Tax Act, 1961 against the order of the Income Tax AppellateTribunal ‘A’ Bench, Chennai dated 12.2.2013 made inITA.No.1848/Mds/2013 for the Assessment year 2010-11 against theorder of the Commissioner of Income Tax Appeals II, Coimbatoredated 31.7.2013, made in ITA.No.110/13-10, for the Assessment year2010-11 against the order of the Deputy Commissioner of Income Tax,Companycircle,Tiruppurdated15.3.2013madeinPAN.GIR.No.AAACC8791P, for the Assessment year 2010-11. Prayer in TC[A].No.706/14TC[A].No.706/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 12/2/14 made in ITANo.1849/Mds/2013 forthe Assessment year 2010-11 against the order of the Commissionerof Income Tax [Appeals], Coimbatore dated 31.7.2013, made inITA.No.31/13-14, for the Assessment year 2010-11 against the orderof the Joint Commissioner of Income Tax, Tiruppur Range, Tiruppurdated 15.3.2013 made in PAN.GIR.No. ,for the Assessmentyear 2010-11. Prayer in TC[A].No.707/14TC[A].No.706/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 12/2/14 made in ITANo.1850/Mds/2013 forthe Assessment year 2010-11 against the order of the Commissionerof Income Tax [Appeals] II, Coimbatore dated 31.7.2013, made inITA.No.35/13-14, for the Assessment year 2010-11 against the orderof the Deputy Commissioner of Income Tax, Company Circle, Tiruppurdated 15.3.2013 made in PAN.GIR.No. , for the Assessmentyear 2010-11. Prayer in TC[A].No.708/14TC[A].No.708/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 12/2/14 made in ITANo.1851/Mds/2013 forthe Assessment year 2010-11 against the order of the Commissionerof Income Tax [Appeals-II], Coimbatore dated 31.7.2013, made inITA.No.25/13-14, for the Assessment year 2010-11 against the orderof the Joint Commissioner of Income Tax, Tiruppur dated 15.3.2013made in PAN.GIR.No.AADC50681H, for the Assessment year 2010-11. Prayer in TC[A].No.709/14TC[A].No.709/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 12/2/14 made in ITANo.1852/Mds/2013 forhttps://hcservices.ecourts.gov.in/hcservices/the Assessment year 2010-11 against the order of the Commissionerof Income Tax [Appeals]II, Coimbatore dated 31.7.2013, made in ITA.No.34/13-14, for the Assessment year 2010-11 against the orderof the Joint Commissioner of Income Tax, Tiruppur Range, Tiruppurdated 15.3.2013 made in PAN.GIR.No.AAEC571881Q, for the Assessmentyear 2010-11. Prayer in TC[A].No.710/14TC[A].No.710/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 12/2/14 made in ITA.No.1853/Mds/2013 forthe Assessment year 2010-11 against the order of the Commissionerof Income Tax [Appeals] II, Coimbatore dated 31.7.2013, made inITA.No.106/13-14, for the Assessment year 2010-11 against the orderof the Deputy Commissioner of Income Tax, Tiruppur Range, Tiruppurdated 15.3.2013 made in PAN.GIR.No. ,for the Assessmentyear 2010-11. ITA.No.34/13-14, for the Assessment year 2010-11 against the orderof the Joint Commissioner of Income Tax, Tiruppur Range, Tiruppurdated 15.3.2013 made in PAN.GIR.No.AAEC571881Q, for the Assessmentyear 2010-11. Prayer in TC[A].No.710/14TC[A].No.710/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 12/2/14 made in ITA.No.1853/Mds/2013 forthe Assessment year 2010-11 against the order of the Commissionerof Income Tax [Appeals] II, Coimbatore dated 31.7.2013, made inITA.No.106/13-14, for the Assessment year 2010-11 against the orderof the Deputy Commissioner of Income Tax, Tiruppur Range, Tiruppurdated 15.3.2013 made in PAN.GIR.No. ,for the Assessmentyear 2010-11. Prayer in TC[A].No.711/14TC[A].No.711/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 12/2/14 made in ITA.No.1854/Mds/2013 forthe Assessment year 2010-11 against the order of the Commissionerof Income Tax [Appeals] II, Coimbatore dated 31.7.2013, made inITA.No.29/13-14, for the Assessment year 2010-11 against the orderof the Deputy Commissioner of Income Tax, Company Circle, Tiruppurdated 15.3.2013 made in PAN.GIR.No. ,for the Assessmentyear 2010-11. Prayer in TC[A].No.712/14TC[A].No.712/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 12/2/14 made in ITANo.1855/Mds/2013 forthe Assessment year 2010-11 against the order of the Commissionerof Income Tax [Appeals] II, Coimbatore dated 31.7.2013, made inITA.No.30/13-14, for the Assessment year 2010-11 against the orderof the Joint Commissioner of Income Tax, Tiruppur Range, Tiruppurdated 15.3.2013 made in PAN.GIR.No.AADC58200N, for the Assessmentyear 2010-11. Prayer in TC[A].No.713/14TC[A].No.713/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunaldated 12/2/14 made in ITANo.1856/Mds/2013 for the Assessment year2010-11 against the order of the Commissioner of Income Tax[Appeals] II, Coimbatore dated 31.7.2013, made in ITA.No.49/12-13,for the Assessment year 2010-11 against the order of the AssistantCommissioner of Income Tax, Circle 1, Tiruppur dated 15.3.2013 madein PAN.GIR.No. , for the Assessment year 2010-11. Prayer in TC[A].No.748/14TC[A].No.748/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunalhttps://hcservices.ecourts.gov.in/hcservices/‘D’ Bench, Chennai dated 24/3/14 made in ITA.No.118/Mds/2014 forthe Assessment year 2010-11 against the order of the Commissioner of Income Tax [Appeals] II, Coimbatore dated 30/10/2013, made inCIT[A] in ITA.No.130/12-13, for the Assessment year 2010-11 againstthe order of the Assistant Commissioner of Income Tax, Circle 1,Tiruppur dated 04.2.2013 made in PAN.GIR.No. , for theAssessment year 2010-11. Prayer in TC[A].No.748/14TC[A].No.748/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunalhttps://hcservices.ecourts.gov.in/hcservices/‘D’ Bench, Chennai dated 24/3/14 made in ITA.No.118/Mds/2014 forthe Assessment year 2010-11 against the order of the Commissioner of Income Tax [Appeals] II, Coimbatore dated 30/10/2013, made inCIT[A] in ITA.No.130/12-13, for the Assessment year 2010-11 againstthe order of the Assistant Commissioner of Income Tax, Circle 1,Tiruppur dated 04.2.2013 made in PAN.GIR.No. , for theAssessment year 2010-11. Prayer in TC[A].No.868/14TC[A].No.868/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘B’ Bench, Chennai dated 22/5/14 made in ITAT inITA.No.597/Mds/2014 for the Assessment year 2010-11 against theorder of the Commissioner of Income Tax [Appeals] II, Coimbatoredated 23/12/2013, made in ITA.No.60/12-13, for the Assessment year2010-11 against the order of the Assistant Commissioner of IncomeTax,Circle1,Tiruppurdated10/12/12madeinPAN.GIR.No.AABFG9171H, for the Assessment year 2010-11.Prayer in TC[A].No.923/14TC[A].No.923/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 28/5/14 made in ITA.No.690/Mds/2014 forthe Assessment year 2010-11 against the order of the Commissionerof Income Tax [Appeals], Coimbatore dated 23/12/2013, made in ITAppeal.No.144/12-13, against the order of the AssistantCommissioner of Income Tax, Circle 1, Tiruppur dated 15.2.2013 madein PAN.GIR.No. , for the Assessment year 2010-11.Prayer in TC[A].No.1000/14TC[A].No.1000/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘A’ Bench, Chennai dated 28/5/14 made in ITA.No.692/Mds/2014 forthe Assessment year 2010-11 against the order of the Commissionerof Income Tax [Appeals], Coimbatore dated 24/12/2013, made inITA.No.131/12-13, for the Assessment year 2010-11 against the orderof the Assistant Commissioner of Income Tax, Circle 1, Tiruppurdated 12/2/2013 made in PAN.GIR.No.ADLPD25469G, for the Assessmentyear 2010-11. Prayer in TC[A].No.1015/14TC[A].No.706/14 filed under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal‘D’ Bench, Chennai dated 8/5/14 made in ITAT inITA.No.1996/Mds/2013 for the Assessment year 2010-11 against theorder of the Commissioner of Income Tax [Appeals], Coimbatore dated29/08/2013, made in ITA.No.75/12-13, for the Assessment year 2010-11 against the order of the Assistant Commissioner of Income Tax,Circle 1, Tiruppur dated 27/12/2012 made in PAN.GIR.No. ,for the Assessment year 2010-11. For Appellant in T.C.(A)Nos.408, 409 of 2012, 17, 533, 534, 535, 593, 594 of 2013 965,of 2013, 197, 221, 264, 265, 307 & 308 of 2014: Mr.T.R.Senthil Kumar Standing counsel for Income Tax T.C.(A)Nos.699 to 713, of 2014: Mr.K.Suresh Kumar Standing counsel for Income Tax T.C.(A)Nos.108, 121, 748, 868, 923, 1000 and 1015 of 2014: Mr. M.Swaminathan Standing counsel for Income Tax For Respondent in(i) T.C.(A)Nos.408 & 409/12: Mr.R.Senniappan(ii) T.C.(A)Nos.17,535,593,594,264, 265 of 2014 : Mr.S.Sridhar (iii) T.C.(A)Nos.533, 534 of 2013and 121, 197, 699 to 713 of 2014965/13, 108, 221, 307 & 308/2014: Mr.R.Sivaraman(iv) T.C.(A)Nos.748, 868, 9231000 and 1015 of 2014: Mr.R.Kumar for Mr.T.N.Seetharaman (Delivered by R.SUDHAKAR,J.) In all the above Tax Case (Appeals), the issue raised by theRevenue is identical. Hence, all the above appeals are taken uptogether and common order is passed. T.C.(A)Nos.699 to 713, of 2014: Mr.K.Suresh Kumar Standing counsel for Income Tax T.C.(A)Nos.108, 121, 748, 868, 923, 1000 and 1015 of 2014: Mr. M.Swaminathan Standing counsel for Income Tax For Respondent in(i) T.C.(A)Nos.408 & 409/12: Mr.R.Senniappan(ii) T.C.(A)Nos.17,535,593,594,264, 265 of 2014 : Mr.S.Sridhar (iii) T.C.(A)Nos.533, 534 of 2013and 121, 197, 699 to 713 of 2014965/13, 108, 221, 307 & 308/2014: Mr.R.Sivaraman(iv) T.C.(A)Nos.748, 868, 9231000 and 1015 of 2014: Mr.R.Kumar for Mr.T.N.Seetharaman (Delivered by R.SUDHAKAR,J.) In all the above Tax Case (Appeals), the issue raised by theRevenue is identical. Hence, all the above appeals are taken uptogether and common order is passed. 2. The common facts, which are not in dispute, in all theabove Tax Case (Appeals) are that the assessees, who are eligiblebusiness undertaking, are engaged in the business of generation ofpower. They claimed deduction in respect of profits derived fromthe wind mill operation (WTG) under Section 80IA of the Income TaxAct falling under Chapter VIA of the Income Tax Act. The AssessingOfficer disallowed the assessees' claim under Section 80IA of theIncome Tax Act primarily on the ground that carried forward loss ofearlier years should be set off before computing the profit for thecurrent year. Aggrieved by the said order of the AssessingOfficer, the assessees preferred appeals before the Commissioner ofIncome Tax (Appeals), who allowed the appeals of the assessees,thereby reversed the order of the Assessing Officer. As againstthe said order of the Commissioner of Income Tax (Appeals), theRevenue preferred appeals before the Income Tax Appellate Tribunal.The Tribunal, following the decision of this Court reported in(2012) 340 ITR 477 (Velayudhaswamy Spinning Mills V. Asst. CIT),https://hcservices.ecourts.gov.in/hcservices/dismissed the appeals filed by the Revenue. Aggrieved by the saidorder of the Tribunal, the Revenue is before this Court. 3. The core issue raised in all the above Tax Case (Appeals)is Whether, on the facts and in the circumstances of the case, theTribunal is right in law in holding that the respondent/assessee ineach appeal is entitled to claim deduction under section 80-IA ofthe Income Tax Act. 4. Learned counsel appearing for the assessee submitted thatthe issue involved in these appeals have already been decided bythis Court in the decision reported in (2012) 340 ITR 477(Velayudhaswamy Spinning Mills V. Asst. CIT) and hence the same maybe followed in these cases also. 5. It is stated by the learned Standing Counsel appearing forthe Revenue that as against the decision rendered by this Court inthe case of Velayudhaswamy Spinning Mills V. Asst. CIT reported in(2012) 340 ITR 477, the Revenue preferred appeals before theSupreme Court and the same are pending. 6. Heard learned counsel appearing for the assessees and thelearned Standing Counsel appearing for the Revenue and perused thematerials placed before this Court. 4. Learned counsel appearing for the assessee submitted thatthe issue involved in these appeals have already been decided bythis Court in the decision reported in (2012) 340 ITR 477(Velayudhaswamy Spinning Mills V. Asst. CIT) and hence the same maybe followed in these cases also. 5. It is stated by the learned Standing Counsel appearing forthe Revenue that as against the decision rendered by this Court inthe case of Velayudhaswamy Spinning Mills V. Asst. CIT reported in(2012) 340 ITR 477, the Revenue preferred appeals before theSupreme Court and the same are pending. 6. Heard learned counsel appearing for the assessees and thelearned Standing Counsel appearing for the Revenue and perused thematerials placed before this Court. 7. In the decision reported in (2012) 340 ITR 477(Velayudhaswamy Spinning Mills V. Asst. CIT), this Court, whiledealing with the benefit under Chapter VIA of the Income Tax Act,placed reliance on the decision reported in (2009) 317 ITR 218 (SC)( Liberty India V. CIT), wherein the Supreme Court considered thescope of Section 80I, 80IA and 80IB of the Income Tax Act and heldthat Chapter VI-A provides for incentives in the form of taxdeductions essentially belong to the category of "profit-linkedincentives". This Court also placed reliance on the decisionreported in (2004) 271 ITR 311 (Raj) (CIT V. Mewar Oil and GeneralMills Ltd.), and came to the conclusion that once the losses andother deduction have set off against the income of the previousyear, it should not be reopened again for the purpose ofcomputation of current year income under Section 80I or 80IA of theIncome Tax Act and the assessee should not be denied the admissiblededuction under Section 80IA of the Income Tax Act. 8. For better understanding of the decision, we extract therelevant portion of the decision of this Court as such:"From a reading of the above, it is clear that thebenefit is given to the profits and gains derived fromthe business of the hotel or the business of repairs toocean-going vessels or other powered craft. Thededuction is allowed to the extent of 20 per cent. fromthe profits and gains of the assessee. Sub-section (5)gives deduction for the period of seven assessmentyears immediately succeeding the initial assessmentyear. Sub-section (6) deals with computing thededuction under sub-section (1) and it starts with nonobstante clause and also it is a deeming provision. Therelevant portion of the decision of this Court as such:"From a reading of the above, it is clear that thebenefit is given to the profits and gains derived fromthe business of the hotel or the business of repairs toocean-going vessels or other powered craft. Thededuction is allowed to the extent of 20 per cent. fromthe profits and gains of the assessee. Sub-section (5)gives deduction for the period of seven assessmentyears immediately succeeding the initial assessmentyear. Sub-section (6) deals with computing thededuction under sub-section (1) and it starts with nonobstante clause and also it is a deeming provision. Thehttps://hcservices.ecourts.gov.in/hcservices/fiction created by the undertaking was the only sourceof income during the previous year initially andof income during the previous year initially and subsequent assessment years. Sub-section (6) was thesubject-matter before this court in the above-mentionedunreported judgment, wherein this court had held thatwhile interpreting the above provision, for the purposeof allowing deduction under section 80-I broughtforward losses and unabsorbed depreciation of the newindustry need not be taken into consideration once theyhave been set off from other sources of income earlier.In the present case, we are concerned with theprovision of section 80-IA. The said provision wasintroduced by the Finance Act, 1999, with effect fromApril 1, 2000. The provisions of sections 80-I and 80-IA are also more or less identically worded. Sections80-I and 80-IA come in Chapter VI-A of the Income-taxAct. Chapter VI-A deals with deductions to be made incomputing total income. There are two tax incentivescontemplated in Chapter VI-A. One is investmentincentive and the other one is profit-linkedinvestment. Chapter VI-A was introduced by the FinanceAct, 1965, with effect from April 1, 1965, and itconsists of four headings. They are A, B, C and D.Heading "A" is general and it also contains definition.It consists of sections 80A, 80AA, 80AB, 80AC and 80B.Section 80AB deals with "Deductions to be made withreference to the income included in the gross totalincome", which reads as follows :"Where any deduction is required to be made or allowedunder any section included in this Chapter under theheading 'C-Deductions in respect of certain incomes' inrespect of any income of the nature specified in thatsection which is included in the gross total income ofthe assessee, then, notwithstanding anything containedin that section, for the purpose of computing thededuction under that section, the amount of income ofthat nature as computed in accordance with theprovisions of this Act (before making any deductionunder this Chapter) shall alone be deemed to be theamount of income of that nature which is derived orreceived by the assessee and which is included in hisgross total income." A mere reading of the above provision makes it clearthat any income of the nature specified in thatsection, which is included in the gross total income ofthe assessee for the purpose of computing the deductionunder that section, the amount of income of that natureas computed in accordance with the provision of thisAct shall alone be deemed to be the amount of income ofthat nature which is derived or received by theassessee and which is included in the gross totalincome. Section 80AB defines "gross total income" whichmeans the total income has to be computed in accordancewith the Act before making deduction under thisChapter. Heading "B" deals with "deductions in respecthttps://hcservices.ecourts.gov.in/hcservices/of certain payments" which consists of sections 80C to A mere reading of the above provision makes it clearthat any income of the nature specified in thatsection, which is included in the gross total income ofthe assessee for the purpose of computing the deductionunder that section, the amount of income of that natureas computed in accordance with the provision of thisAct shall alone be deemed to be the amount of income ofthat nature which is derived or received by theassessee and which is included in the gross totalincome. Section 80AB defines "gross total income" whichmeans the total income has to be computed in accordancewith the Act before making deduction under thisChapter. Heading "B" deals with "deductions in respecthttps://hcservices.ecourts.gov.in/hcservices/of certain payments" which consists of sections 80C to 80GGC. Heading "C" deals with "deductions in respect ofcertain incomes", which consists of sections 80H to80TT. The last heading "D" deals with "otherdeductions" which consists of sections 80U to 80V.Heading "C" is relevant for considering the issue inthese appeals. The relevant provisions that are to beconsidered are sections 80-I, 80-IA and 80-IB. In thecase of Liberty India v. CIT [2009] 317 ITR 218 (SC) ;[2009] 225 CTR (SC) 233 ; [2009] 28 DTR (SC) 73, theapex court considered the scope of sections 80-I, 80-IAand also section 80-IB of the Act, wherein, it has beenheld that Chapter VI-A provides for incentives in theform of tax deductions essentially belong to thecategory of "profit-linked incentives". Therefore, whensection 80-IA/80-IB refers to profits derived fromeligible business, it is not the ownership of thatbusiness which attracts the incentives. Further, it hasbeen held that sections 80-IB/80-IA are the code bythemselves as they contain both substantive as well asprocedural provisions. The Supreme Court furtherobserved in the said judgment that sub-section (5) ofsection 80-IA provides for manner of computation ofprofits of an eligible business. Accordingly suchprofits are to be computed as if such eligible businessis the only source of income of the assessee. Section 80-IA reads as follows : "80-IA. (1) Where the gross total income of an assesseeincludes any profits and gains derived by anundertaking or an enterprise from any business referredto in sub-section (4) (such business being hereinafterreferred to as the eligible business) there shall, inaccordance with and subject to the provisions of thissection, be allowed in computing the total income ofthe assessee, a deduction of an amount equal to hundredper cent. of the profits and gains derived from suchbusiness for ten consecutive assessment years. (2) The deduction specified in sub-section (1) may, atthe option of the assessee, be claimed by him for anyten consecutive assessment years out of fifteen yearsbeginning from the year in which the undertaking or theenterprise develops and begins to operate anyinfrastructurefacilityorstartsprovidingtelecommunication service or develops an industrialpark or develops a special economic zone referred to inclause (iii) of sub-section (4) or generates power orcommences transmission or distribution or power orundertakes substantial renovation and modernisation ofthe existing transmission or distribution lines. (4) This section applies to- (i) any enterprise carrying on the business of (i)developing, or (ii) operating and maintaining, or (iii)https://hcservices.ecourts.gov.in/hcservices/developing,operatingandmaintainingany infrastructure facility which fulfils all the followingconditions, namely : (a) it is owned by a company registered in India or bya consortium of such companies (or by an authority or aboard or a corporation or any other body established orconstituted under any Central or State Act) ; (4) This section applies to- (i) any enterprise carrying on the business of (i)developing, or (ii) operating and maintaining, or (iii)https://hcservices.ecourts.gov.in/hcservices/developing,operatingandmaintainingany infrastructure facility which fulfils all the followingconditions, namely : (a) it is owned by a company registered in India or bya consortium of such companies (or by an authority or aboard or a corporation or any other body established orconstituted under any Central or State Act) ; (b) it has entered into an agreement with the CentralGovernment or a State Government or a local authorityor any other statutory body for (i) developing, or (ii)operating and maintaining, or (iii)developing,operating and maintaining a new infrastructure facility; (c) it has started or starts operating and maintainingthe infrastructure facility on or after the 1st April,1995. (5) Notwithstanding anything contained in any otherprovision of this Act, the profits and gains of aneligible business to which the provisions of sub-section (1) apply shall, for the purposes ofdetermining the quantum of deduction under that sub-section for the assessment year immediately succeedingthe initial assessment year or any subsequentassessment year, be computed as if such eligiblebusiness were the only source of income of the assesseeduring the previous year relevant to the initialassessment year and to every subsequent assessment yearup to and including the assessment year for which thedetermination is to be made." From a reading of sub-section (1), it is clear that itprovides that where the gross total income of anassessee includes any profits and gains derived by anundertaking or an enterprise from any business referredto in subsection (4), i.e., referred to as the eligiblebusiness, there shall, in accordance with and subjectto the provisions of the section, be allowed, incomputing the total income of the assessee, a deductionof an amount equal to 100 per cent. of the profits andgains derived from such business for ten consecutiveassessment years. Deduction is given to eligiblebusiness and the same is defined in sub-section (4).Sub-section (2) provides option to the assessee tochoose 10 consecutive assessment years out of 15 years.Option has to be exercised, if it is not exercised, theassessee will not be getting the benefit. Fifteen yearsis outer limit and the same is beginning from the yearin which the undertaking or the enterprise develops andbegins to operate any infrastructure activity, etc.Sub-section (5) deals with quantum of deduction for aneligible business. The words "initial assessment year" are used in sub-section (5) and thehttps://hcservices.ecourts.gov.in/hcservices/same is not defined under the provisions. It is to benoted that "initial assessment year" employed in sub- section (5) is different from the words "beginning fromthe year" referred to in sub-section (2). The importantfactors are to be noted in sub-section (5) and they areas under : "(1) It starts with a non obstante clause which meansit overrides all the provisions of the Act and otherprovisions are to be ignored ; (2) It is for the purpose of determining the quantum ofdeduction ; (3) For the assessment year immediately succeeding theinitial assessment year ; (4) It is a deeming provision ; (5) Fiction created that the eligible business is theonly source of income ; and assessment year" are used in sub-section (5) and thehttps://hcservices.ecourts.gov.in/hcservices/same is not defined under the provisions. I