The Deputy Commissioner of Income-tax, Circle -2, Tirpupur v. M/s. Cotton Blossom India Pvt. Ltd
[Citation -2016-LL-0923-91]

Citation 2016-LL-0923-91
Appellant Name The Deputy Commissioner of Income-tax, Circle -2, Tirpupur
Respondent Name M/s. Cotton Blossom India Pvt. Ltd.
Court ITAT-Chennai
Relevant Act Income-tax
Date of Order 23/09/2016
Assessment Year 2013-14
Judgment View Judgment
Keyword Tags unabsorbed depreciation • notional loss
Bot Summary: Commissioner of Income Tax, Coimbatore granting the claim for deduction u/s.80IA of the Income Tax Act, 1961. Ld. Commissioner of Income Tax had taken a view that unabsorbed depreciation of earlier years prior to the initial year of preferring a claim under deduction u/s.80IA of the Act was not to be notionally carried forward and set off before granting such deduction. Commissioner of Income Tax had followed the judgment of Hon ble Jurisdictional High Court in the case of M/s. Sri Valayuthasamy Spinning Mills Ltd vs. ACIT 340 ITR 477. The contention of the Revenue before us is that the assessees had claimed deduction u/s 80IA(4) of the Act without setting off of the depreciation of the said units for the earlier years. As against this, claim of the assessees are that such depreciation loss was already adjusted and therefore, notional loss could not be brought forward and forcibly set off against the profits of the impugned assessment years. In the result, the appeals of the of the Revenue are dismissed. Order pronounced on Friday, the 23rd day of September, 2016, at Chennai.


IN INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER I.T.A. No. 1894/Mds/2016 Assessment year : 2013-2014 Deputy Commissioner Vs. M/s. Cotton Blossom India of Income Tax, Pvt. Ltd, Circle -2, Shed No.189, TEKIC Tea 121, Sixty Feed Road, Nagar, Tirpupur 641 602 SIDCO, Mudalipalayam, Tirupur 641 606. [PAN AACCC 5046R Appellant by : Shri. Supriya Pal, IRS, JCIT. Respondent by : Shri. N. Vijaykumar, C.A. I.T.A. No. 1895/Mds/2016 Assessment year : 2013-2014 Deputy Commissioner Vs. M/s. Anugraha Fashion Mills of Income Tax, Pvt. Ltd, Circle -2, No.15, Suriyan Nagar, 121, Sixty Feed Road, ABT Road New Extn, Tirpupur 641 602 Karuvampalayam, Tirupur 641 604. [PAN AAHCA 3311Q] Appellant by : Shri. Supriya Pal, IRS, JCIT. Respondent by : Shri. N. Vijaykumar, C.A. :- 2 -: ITA Nos.1894 to 97/16 I.T.A. No. 1896/Mds/2016 Assessment year : 2013-2014 Deputy Commissioner Vs. M/s. Royal Classic Mills Pvt. Ltd, of Income Tax, No.31, Puliamara Thottam, Circle -2, Mangalam Road, 121, Sixty Feed Road, Tirupur 641 604. Tirpupur 641 602 [PAN AABCR 1226M] Appellant by : Shri. Supriya Pal, IRS, JCIT. Respondent by : Shri. A.S. Sriraman, Adv. I.T.A. No. 1897/Mds/2016 Assessment year : 2012-2013 Deputy Commissioner Vs. M/s. Centwin Textile Mills Pvt. of Income Tax, Ltd, Circle -2, S.F. No.100, Palladam Road 121, Sixty Feed Road, Tirupur 641 604. Tirpupur 641 602 [PAN AAACC 8793R] (Appellant) (Respondent) Appellant by : Shri. Supriya Pal, IRS, JCIT. Respondent by : Shri. N. Vijaykumar, C.A. Date of Hearing : 20-09-2016 Date of Pronouncement : 23-09-2016 :- 3 -: ITA Nos.1894 to 97/16 ORDER PER SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER: These appeals filed by Revenue are directed against orders of ld. Commissioner of Income Tax (Appeals), Coimbatore granting claim for deduction u/s.80IA of Income Tax Act, 1961 (herein after referred to as Act ). 2. Ld. Commissioner of Income Tax (Appeals) had taken view that unabsorbed depreciation of earlier years prior to initial year of preferring claim under deduction u/s.80IA of Act was not to be notionally carried forward and set off before granting such deduction. ld. Commissioner of Income Tax (Appeals) had followed judgment of Hon ble Jurisdictional High Court in case of M/s. Sri Valayuthasamy Spinning Mills Ltd vs. ACIT 340 ITR 477. contention of Revenue before us is that assessees had claimed deduction u/s 80IA(4) of Act without setting off of depreciation of said units for earlier years. As against this, claim of assessees are that such depreciation loss was already adjusted and therefore, notional loss could not be brought forward and forcibly set off against profits of impugned assessment years. We find that issue raised in these appeals is squarely covered by judgment of Jurisdictional High Court in case of :- 4 -: ITA Nos.1894 to 97/16 Velayudhaswamy Spinning Mills P. Ltd (supra). Once earlier losses had been set off against other income, there is no question of notional adjustment of such losses against profits of given year as per above judgment, while working out deduction claimed u/s 80IA of Act. Since CIT(A) had followed judgment of Madras High Court, we do not find any reason to interfere with order of CIT(A). 3. In result, appeals of of Revenue are dismissed. Order pronounced on Friday, 23rd day of September, 2016, at Chennai. Sd/- Sd/- (G. PAVAN KUMAR) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER Chennai Dated: 23rd September, 2016 KV Copy to: 1. Appellant 3. CIT(A) 5. DR 2. Respondent 4. CIT 6. GF Deputy Commissioner of Income-tax, Circle -2, Tirpupur v. M/s. Cotton Blossom India Pvt. Ltd
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