The Joint Commissioner of Income-tax (OSD), Corporate Circle–1(2), Chennai v. M/s Chettinad Morimura Semiconductor Material Pvt. Ltd
[Citation -2016-LL-0930-115]

Citation 2016-LL-0930-115
Appellant Name The Joint Commissioner of Income-tax (OSD), Corporate Circle–1(2), Chennai
Respondent Name M/s Chettinad Morimura Semiconductor Material Pvt. Ltd.
Court ITAT-Chennai
Relevant Act Income-tax
Date of Order 30/09/2016
Assessment Year 2010-11
Judgment View Judgment
Keyword Tags eligible business
Bot Summary: Referring to the judgement of Madras High Court in Velayudhaswamy Spinning Mills Ltd. v. ACIT 340 ITR 477, the Ld. D.R. submitted that the Revenue has already filed an appeal in the Supreme Court against the judgement of Madras High Court. The Assessing Officer has not followed the judgement of Madras High Court. On a query from the Bench, when the CBDT instructed its officers to withdraw all the appeals filed against the judgement of Madras High Court in Velayudhaswamy Spinning Mills Ltd. and 3 I.T.A. No.1537/Mds/16 directed the officers to accept the Madras High Court judgement in Velayudhaswamy Spinning Mills Ltd., how the appeal is maintainable before this Tribunal The Ld. D.R. could not clarify anything. The adjustment of depreciation loss was the subject matter of discussion before the Madras High Court in Velayudhaswamy Spinning Mills Ltd. The Madras High Court found that the adjustment as claimed by the assessee may be allowed and the depreciation can be set off. Admittedly, the Revenue has filed appeal before the Apex Court against the judgement of Madras High Court in Velayudhaswamy Spinning Mills Ltd. Recently, the CBDT has directed its officers to accept the judgement of Madras High Court and withdraw all the appeals filed by the Revenue. The Revenue ought not have filed appeal before this Tribunal contending that the appeal filed by the Revenue before the Apex Court against the judgement of Madras High Court in Velayudhaswamy Spinning Mills Ltd. is pending. In view of the circular of the CBDT instructing its officers not to file appeal and 4 I.T.A. No.1537/Mds/16 accept the decision of Madras High Court in Velayudhaswamy Spinning Mills Ltd., the appeal filed by the Revenue is not maintainable.


IN INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA No. 1537/Mds/2016 Assessment Year : 2010-11 Joint Commissioner of M/s Chettinad Morimura Income Tax (OSD), v. Semiconductor Material Pvt. Ltd., Corporate Circle 1(2), No.37, Old Mahabalipuram Road, Chennai - 600 034. Kazhipattur Village, Kanchipuram 603 103. PAN : AAACC 2461 Q (Appellant) (Respondent) Appellant by : Shri V. Nanda Kumar, JCIT Respondent by : Shri K.B. Muralidharan, CA Date of Hearing : 16.08.2016 Date of Pronouncement : 30.09.2016 ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of Revenue is directed against order of Commissioner of Income Tax (Appeals) 1, Chennai, dated 11.02.2016 and pertains to assessment year 2010-11. 2 I.T.A. No.1537/Mds/16 2. only issue arises for consideration is with regard to depreciation claimed by assessee on windmill. 3. Shri V. Nanda Kumar, Ld. Departmental Representative, submitted that Assessing Officer disallowed claim of assessee on ground that assessee has adjusted previous year loss from windmill against income from other business. Subsequently, profit from windmill is also claimed as deduction against other business income by which income from other business is reduced. Therefore, according to Ld. D.R., Assessing Officer found that assessee cannot have double benefit by adjusting depreciation loss by eligible business against income of taxable business. Referring to judgement of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT (2012) 340 ITR 477, Ld. D.R. submitted that Revenue has already filed appeal in Supreme Court against judgement of Madras High Court. Therefore, Assessing Officer has not followed judgement of Madras High Court. On query from Bench, when CBDT instructed its officers to withdraw all appeals filed against judgement of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. and 3 I.T.A. No.1537/Mds/16 directed officers to accept Madras High Court judgement in Velayudhaswamy Spinning Mills (P) Ltd., how appeal is maintainable before this Tribunal? Ld. D.R. could not clarify anything. 4. We heard Shri K.B. Muralidharan, Ld. representative for assessee also. adjustment of depreciation loss was subject matter of discussion before Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. (supra). Madras High Court found that adjustment as claimed by assessee may be allowed and depreciation can be set off. Admittedly, Revenue has filed appeal before Apex Court against judgement of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. (supra). Recently, CBDT has directed its officers to accept judgement of Madras High Court and withdraw all appeals filed by Revenue. This direction of CBDT is binding on all its officers. Therefore, Revenue ought not have filed appeal before this Tribunal contending that appeal filed by Revenue before Apex Court against judgement of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. is pending. In view of circular of CBDT instructing its officers not to file appeal and 4 I.T.A. No.1537/Mds/16 accept decision of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. (supra), appeal filed by Revenue is not maintainable. 5. In result, appeal filed by Revenue stands dismissed. Order pronounced on 30th September, 2016 at Chennai. sd/- sd/-(A.Mohan Alankamony) (N.R.S. Ganesan) Accountant Member Judicial Member Chennai, th Dated, 30 September, 2016. Kri. Copy to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT, 5. DR 6. GF. Joint Commissioner of Income-tax (OSD), Corporate Circle–1(2), Chennai v. M/s Chettinad Morimura Semiconductor Material Pvt. Ltd
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