COMMISSIONER OF INCOME TAX Vs. R. YUVARAJ

JUDGEMENT

(1.) THIS appeal is filed by the Revenue as against the order of the Income Tax Appellate Tribunal. The core issue raised in this Tax Case (Appeal) is whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the respondent/assessee is entitled to claim deduction under Section 80 -IA of the Income Tax Act.

(2.) THOUGH it is brought to the notice of this Court that the issue involved in this appeal has already been decided by this Court in the decision reported in Velayudhaswamy Spinning Mills Vs Asst. CIT : [2012) 340 ITR 477], it is stated by the learned Standing Counsel appearing for the Revenue that as against the decision rendered by this Court in Velayudhaswamy Spinning Mills, the Revenue has preferred appeals before the Supreme Court and the same are pending.

(3.) IN the decision reported in Velayudhaswamy Spinning Mills, this Court, while dealing with the benefit under Chapter VIA of the Income Tax Act, placed reliance on the decision reported in Liberty India Vs CIT : [2009) 317 ITR 218 (SC)], wherein the Supreme Court considered the scope of Sections 80I, 80IA and 80IB of the Income Tax Act and held that Chapter VI -A provides for incentives in the form of tax deductions essentially belong to the category of "profit -linked incentives". This Court also placed reliance on the decision reported in CIT - Vs - Mewar Oil and General Mills Ltd. : [2004) 271 ITR 311 (Raj)] and came to the conclusion that once the losses and other deduction have been set off against the income of the previous year, it should not be reopened again for the purpose of computation of current year income under Section 80I or 80IA of the Income Tax Act and the assessee should not be denied the admissible deduction under Section 80IA of the Income Tax Act.