The Deputy Commissioner of Income-tax, Circle -1, Tirupur v. M/s. Sueera Alloys Global P. Ltd
[Citation -2016-LL-0930-137]

Citation 2016-LL-0930-137
Appellant Name The Deputy Commissioner of Income-tax, Circle -1, Tirupur
Respondent Name M/s. Sueera Alloys Global P. Ltd.
Court ITAT-Chennai
Relevant Act Income-tax
Date of Order 30/09/2016
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, before setting of earlier year s notional losses. Ld. Commissioner of Income Tax had taken a view that unabsorbed depreciation of 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. We find that the issue raised in these appeals is squarely covered by :- 3 -: ITA No.1980 1982/2016. Order pronounced on Friday, the 30th 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. 1980/Mds/2016 Assessment year : 2013-2014 Deputy Commissioner of Vs. M/s. Sueera Alloys Global P. Ltd, Income Tax, No.315/2, Seembayanallur Village, Circle -1, Kandampalayam, Tirupur Avinashi 641 654. Coimbatore PAN AAGCS 6735B] Appellant by : Shri. Supriyo Pal, JCIT. Respondent by : Shri. M. Narayanan, Addl. CIT(Retd) I.T.A. No. 1982/Mds/2016 Assessment year : 2013-2014 Deputy Commissioner of Vs. M/s. Kesharinandan Knit Fabrics Income Tax, (P) Ltd, Circle -1, 174/175, Lingai Gounder Street, Tirupur Tirupur 641 602. PAN AAACK 8625Q] ( Appellant) (Respondent) Appellant by : Shri. Supriyo Pal, JCIT Respondent by : Ms. B. Jaisheila, C.A Date of Hearing : 29-09-2016 Date of Pronouncement : 30-09-2016 :- 2 -: ITA No.1980 & 1982/2016. O R D E R 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 ), before setting of earlier year s notional losses. 2. Ld. Commissioner of Income Tax (Appeals) had taken view that unabsorbed depreciation of 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 :- 3 -: ITA No.1980 & 1982/2016. judgment of Jurisdictional High Court in case of Velayudhaswamy Spinning Mills P. Ltd (supra). Once earlier losses had been set off against other income, there was 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 Jurisdictional 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, 30th day of September, 2016, at Chennai. Sd/- Sd/- (G. PAVAN KUMAR) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER Chennai Dated:30th September, 2016 KV Copy to: 1. Appellant 3. CIT(A) 5. DR 2. Respondent 4. CIT 6. GF Deputy Commissioner of Income-tax, Circle -1, Tirupur v. M/s. Sueera Alloys Global P. Ltd
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