M/s. K.S.P.S. Natarajan & Co. v. The Joint Commissioner of Income-tax, Special Range-II, Tuticorin
[Citation -2015-LL-0120-7]

Citation 2015-LL-0120-7
Appellant Name M/s. K.S.P.S. Natarajan & Co.
Respondent Name The Joint Commissioner of Income-tax, Special Range-II, Tuticorin
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 20/01/2015
Judgment View Judgment
Keyword Tags industrial undertaking • computing deduction • eligible business
Bot Summary: Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that in the case of assessee engaged in the generation of electricity requirement of employing ten or more persons under Section 80IA(2(v) would be applicable 3. For the assessment year 1998-99, the assessee filed return of income admitting total income of Rs.19,88,324/-. While completing the assessment, the Assessing Officer disallowed the claim of deduction under Section 80IA of Rs.11,44,383/- being the income earned from generation of power through wind mill on the ground that the assessee did not engage ten workers as per Section 80IA 2)(v) and also on the ground that the deduction under Section 80IA should be allowed on the basis that the eligible business is the only source of income. Against which, the assessee pursued the matter before the Income Tax Appellate Tribunal. The assessee conceded stating that the issue in the present appeal stands covered against the assessee in the case of Ramakrishna Mills Ltd. in ITA No.84/Mds/98. Learned counsel appearing for the assessee submitted that the issue involved in the case of Ramakrishna Mills Ltd. is a totally different one and therefore, the appeal may be entertained on the plea of eligibility of Section 80IA of the Income Tax Act. We are not inclined to accept such a plea in view of the fact that the assessee itself had fairly conceded before the Tribunal that the sole issue raised was covered by the decision of the said Bench.


IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 20.01.2015 CORAM: HONOURABLE MR.JUSTICE R.SUDHAKAR and HONOURABLE MR.JUSTICE R.KARUPPIAH Tax Case (Appeal) No.760 of 2007 M/s.K.S.P.S.Natarajan & Co. 13A/1, Meenakshipuram West Tuticorin Appellant versus Joint Commissioner of Income Tax Special Range-II, Tuticorin .. Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income Tax Act, 1961 as against order dated 09.03.2006 made in I..T.A..No.1814/mds/2004 on file of Income Tax Appellate Tribunal, Madras 'C' Bench for assessment year 1998-99. For appellant : Mr.R.Vijayaraghavan for M/s.Subbaraya Aiyar Padmanabhan For respondent : Mr.M.Swaminathan Standing Counsel for Income Tax. JUDGMENT (Judgment of Court was delivered by R.SUDHAKAR,J.) This Tax Case (Appeal) filed by assessee as against order of Income Tax Appellate Tribunal was admitted by this Court on 2 following substantial questions of law: 1. Whether on facts and in circumstances of case, Appellate Tribunal was right in law in holding that appellant is not entitled to deduction under Section 80IA of Act of profits from generation of electricity through wind electricity generation for assessment year 1998-99? 2. Whether on facts and in circumstances of case, Appellate Tribunal was right in law in holding that in case of assessee engaged in generation of electricity requirement of employing ten or more persons under Section 80IA(2(v) would be applicable? 3. Whether on facts and in circumstances of case, Appellate Tribunal was justified in not appreciating that industrial undertaking engaged in power generation u/s. 80IA(2)(ivb) is different from industrial undertaking mentioned in Sec.80IA(20(v)/ 4. Whether on facts and in circumstances of case, Appellate Tribunal was right in law in holding that losses incurred by industrial undertaking in earlier years, which was adjusted against income of other units in earlier assessment years, has to be notionally carried forward and set-off against income of current assessment year for purpose of computing deduction under Section 80IA of Act? 3 2. appellant/assessee is engaged in business of generation of electricity among other business. For assessment year 1998-99, assessee filed return of income admitting total income of Rs.19,88,324/-. While completing assessment, Assessing Officer disallowed claim of deduction under Section 80IA of Rs.11,44,383/- being income earned from generation of power through wind mill on ground that assessee did not engage ten workers as per Section 80IA((2)(v) and also on ground that deduction under Section 80IA should be allowed on basis that eligible business is only source of income. 3. Aggrieved by order of Assessing Officer, assessee preferred appeal before Commissioner of Income Tax (Appeals), who dismissed appeal. Against which, assessee pursued matter before Income Tax Appellate Tribunal. 4. Before Tribunal, assessee conceded stating that issue in present appeal stands covered against assessee in case of Ramakrishna Mills Ltd. in ITA No.84/Mds/98. In view of such submission, Tribunal had no other option except to follow said decision. Hence, Tribunal following its decision dismissed 4 appeal. For better clarity, we extract relevant portion of order of Tribunal as such. "5. Before us Shri S.P.Chidambaram, learned counsel for assessee appeared. It was fairly conceded that issue involved in present appeal stands covered against assessee by decision of D- Bench of this Tribunal in case of Ramakrishna Mills Ltd in ITA No.84/Mds/98. In view of above, we dismiss appeal of assessee". 5. Not satisfied with order of Tribunal, assessee is before this Court. 6. Heard learned counsel appearing for assessee and learned Standing Counsel appearing for Revenue and perused materials placed before this Court. 7. Before us, learned counsel appearing for assessee submitted that issue involved in case of Ramakrishna Mills Ltd. is totally different one and therefore, appeal may be entertained on plea of eligibility of Section 80IA of Income Tax Act. 5 8. We are not inclined to accept such plea in view of fact that assessee itself had fairly conceded before Tribunal that sole issue raised was covered by decision of said Bench. If at all assessee has any grievance, it is case for review before Tribunal and not appeal before this Court. 9. Accordingly, this Tax Case (Appeal) is dismissed. No costs. Index: Yes / No (R.S.,J.) (R.K.,J.) Internet: Yes / No 20.01.2015 sl To 1. Income Tax Appellate Tribunal, Madras 'D' Bench. 2. Commissioner of Income Tax (Appeals)-VII, Chennai 3. Deputy Commissioner of Income Tax Circle I (1), Salem. 6 R.SUDHAKAR,J. AND R.KARUPPIAH,J. sl Tax Case (Appeal) No.760 of 2007 20.1.2015 M/s. K.S.P.S. Natarajan & Co. v. Joint Commissioner of Income-tax, Special Range-II, Tuticorin
Report Error