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2015 (7) TMI 1065 - AT - Income TaxDeduction u/s 80IA - AO computed deduction u/s 80IA after adjusting the notional loss brought forward from the year of commencement as against the initial year of claim - CIT(A), by following the judgment of Velayudhaswamy Spinning Mills (P) Ltd (2010 (3) TMI 860 - Madras High Court ) allowed the claim of the assessee - Held that - After hearing both parties, we find that mere pendency of the SLP before the Apex Court cannot be a reason for not following the judgment of the Jurisdictional High Court. It is not in dispute that the judgment of the Jurisdictional High Court is squarely applicable to the facts of the case. Therefore, the CIT(A) has rightly followed the judgment of the Jurisdictional High Court and allowed the claim of the assessee. This Tribunal do not find any infirmity in the order of the CIT(A) and accordingly, the same is confirmed. - Decided against revenue
Issues:
Deduction u/s 80IA of the Income Tax Act. Analysis: The appeal before the Appellate Tribunal ITAT Chennai concerned the deduction u/s 80IA of the Income Tax Act. The only issue for consideration was whether the notional loss brought forward could be adjusted for claiming the deduction u/s 80IA. The Assessing Officer adjusted the notional loss brought forward from the year of commencement, but the assessee contended that it cannot be adjusted for claiming the deduction. The Assessing Officer referred to a judgment of the Madras High Court supporting the assessee's claim but disallowed it due to a pending appeal before the Apex Court. However, the CIT(A) allowed the claim based on the Madras High Court judgment. Upon hearing both parties, the Tribunal held that the mere pendency of the Special Leave Petition (SLP) before the Apex Court should not prevent following the judgment of the Jurisdictional High Court. It was acknowledged that the Jurisdictional High Court's judgment was directly applicable to the case. Therefore, the Tribunal found no fault in the CIT(A)'s decision to follow the High Court judgment and allow the assessee's claim. Consequently, the Tribunal confirmed the CIT(A)'s order, dismissing the Revenue's appeal. The Tribunal's decision was pronounced in an open court on July 31, 2015, in Chennai.
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