The Commissioner of Income-tax, Chennai v. M/s. Voltech Projects Pvt.Ltd - 2014-LL-1125-24

Citation	2014-LL-1125-24
Appellant Name	The Commissioner of Income-tax, Chennai
Respondent Name	M/s. Voltech Projects Pvt.Ltd.
Court	HIGH COURT OF MADRAS
Relevant Act	Income-tax
Date of Order	25/11/2014
Assessment Year	2008-09
Judgment	View Judgment
Keyword Tags	contract business • industrial estate
Bot Summary:	For Appellant: Ms.G.Vardini Karthik for Mr.T.Ravikumar JUDGMENT The respondent-assessee is engaged in contract business and in the memo of income, it had claimed deduction of the amounts retained by its clients as per the contracts. According to the assessee, as the amounts were not received, they cannot be considered as part of income for the impugned assessment year. The original authority, while considering the decision of this Court in Commissioner of Income Tax v. Ignifluid Boilers Ltd., 283 ITR 295), was of the view that since the issue was pending before the 2 Supreme Court and that such a claim is of recurring nature, declined to extend the benefit to the assessee. The Commissioner of Income Tax laying emphasis on the decision of this Court in Ignifluid Boilers Ltd., case, allowed the appeal of the assessee and the department's appeal before the Tribunal was dismissed holding that the decision of the jurisdictional High Court is binding on the Tribunal and therefore there was no reason to differ with the findings of the Commissioner of Income Tax. 4879 of 2006 against the decision of this Court in Ignifluid Boilers Ltd., case was dismissed by the Supreme Court by order dated 17.7.2006. Since the issue raised in this appeal had already been decided against the department by the Supreme Court in C.C.No. Accordingly, the tax case appeal is dismissed Index: no Internet: yes 25.11.2014 ss 3 To 1.

IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 25.11.2014 CORAM HONOURABLE MR.JUSTICE R.SUDHAKAR AND HONOURABLE MR.JUSTICE R.KARUPPIAH Tax Case (Appeal) No.513 of 2014 Commissioner of Income Tax Chennai Appellant -vsM/s.Voltech Projects Pvt.Ltd., No.153, Developed Plots Electrical & Electronics Industrial Estate Perungudi, Chennai-96 Respondent Memorandum of Grounds of Tax Case Appeal under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal, Chennai 'D' Bench dated 2.5.2012 made in I.T.A.No.259/Mds/2012 for assessment year 2008-09. For Appellant: Ms.G.Vardini Karthik for Mr.T.Ravikumar JUDGMENT (Judgment of Court was delivered by R.SUDHAKAR,J.) respondent-assessee is engaged in contract business and in memo of income, it had claimed deduction of amounts retained by its clients as per contracts. According to assessee, as amounts were not received, they cannot be considered as part of income for impugned assessment year. original authority, while considering decision of this Court in Commissioner of Income Tax v. Ignifluid Boilers (P) Ltd., [(2006) 283 ITR 295)], was of view that since issue was pending before 2 Supreme Court and that such claim is of recurring nature, declined to extend benefit to assessee. Commissioner of Income Tax (Appeals), however, laying emphasis on decision of this Court in Ignifluid Boilers (P) Ltd., case (supra), allowed appeal of assessee and department's appeal before Tribunal was dismissed holding that decision of jurisdictional High Court is binding on Tribunal and therefore there was no reason to differ with findings of Commissioner of Income Tax (Appeals). said order of Tribunal is under challenge before us. 2. When matter was taken up for admission, learned counsel for appellant fairly pointed out that Special Leave Petition preferred by department in C.C.No.4879 of 2006 against decision of this Court in Ignifluid Boilers (P) Ltd., case was dismissed by Supreme Court by order dated 17.7.2006. 3. Since issue raised in this appeal had already been decided against department by Supreme Court in C.C.No.4879 of 2006 dated 17.7.2006 (Commissioner of Income Tax v. M/s Ignified Boilers India Ltd.) and in C.C.No.9463 of 2006 dated 12.12.2006 (Commissioner of Income Tax v. East Coast Constructions & Industries Limited),no question of law arises for consideration. Accordingly, tax case appeal is dismissed Index: no (R.S.J.,) (R.K.,J.) Internet: yes 25.11.2014 ss 3 To 1. Income Tax Appellate Tribunal Chennai 'D' Bench Chennai 2. Commissioner of Income Tax Chennai 4 R.SUDHAKAR,J. and R.KARUPPIAH,J.Tax Case (A) No.513 of 2014 25.11.2014 Commissioner of Income-tax, Chennai v. M/s. Voltech Projects Pvt.Ltd

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