2015 (12) TMI 1851 - AT - Income Tax

Deduction u/s 80-IA in respect of windmills - AO rejected the claim of the assessees on the ground that the Department has filed a Special Leave Petition against the judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd 2010 (3) TMI 860 - MADRAS HIGH COURT - HELD THAT - This Tribunal is of the considered opinion that mere pendency of Special Leave Petition before the Apex Court cannot be a reason to take a different view. The judgment of Madras High Court is binding on all the authorities in the State of Tamil Nadu and Union Territory of Pondicherry. Therefore the Commissioner of Income Tax (Appeals) has rightly allowed the claim of the assessees by following the binding judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd (supra). Therefore this Tribunal do not find any infirmity in the order of the Commissioner of Income Tax (Appeals). Appeals of the Revenue are dismissed.

Summary

Issues involved:
Appeals filed by Revenue against orders of Commissioner of Income Tax (Appeals) regarding deduction claimed under Section 80-IA of the Income Tax Act, 1961 for windmills.

Analysis:

1. Common Issue in Appeals:
The appeals filed by the Revenue were directed against various orders of the Commissioner of Income Tax (Appeals) concerning the deduction claimed by the assessee under Section 80-IA of the Income Tax Act, 1961 for windmills. Due to the common nature of the issue in these appeals, they were clubbed together and heard collectively for convenience.

2. Disposal of Case:
In the specific case of M/s. SVA Syntex Pvt. Ltd, where the assessee did not appear, the case was disposed of on merits after hearing the Departmental Representative. The main issue for consideration in all these appeals revolved around the deduction claimed by the assessee under Section 80-IA of the Income Tax Act, 1961 in relation to windmills.

3. Contention of the Department:
The Department contended before the Tribunal that the Revenue had not accepted the judgment of the Madras High Court and had filed an appeal along with a Special Leave Petition, which was pending before the Apex Court. However, the Tribunal opined that the mere pendency of a Special Leave Petition before the Apex Court should not be a reason to deviate from the judgment of the Madras High Court. The Tribunal emphasized that the judgment of the Madras High Court was binding on all authorities in the State of Tamil Nadu and Union Territory of Pondicherry.

4. Decision of the Tribunal:
The Tribunal upheld the decision of the Commissioner of Income Tax (Appeals) who had allowed the claim of the assessees based on the judgment of the Madras High Court. The Tribunal found no fault with the order of the Commissioner and dismissed the appeals of the Revenue. The Tribunal's decision was based on the principle that the judgment of the Madras High Court was binding and authoritative within its jurisdiction.

In conclusion, the Tribunal's judgment affirmed the decision of the Commissioner of Income Tax (Appeals) regarding the deduction claimed under Section 80-IA of the Income Tax Act, 1961 for windmills, emphasizing the binding nature of the Madras High Court's judgment within its jurisdiction.