COMMISSIONER OF INCOME TAX Vs. PREM TEXTILE INTERNATIONAL

JUDGEMENT

(1.) Challenge in this Tax Case Appeal, is to an order made by the Income Tax Appellate Tribunal in I.T.A.No.311/Mds/2015, dated 15.05.2015, by which, the Tribunal has dismissed the appeal preferred by the revenue, against the order of the Commissioner of Income-Tax, dated 27.11.2014.

(2.) Short facts leading to the appeal are that the assessee filed the return for the assessment year 2011-12, on 29.09.2011, admitting the total income of Rs.15,19,456/-. The nature of business of the assessee is to export home textiles products and generate power using wind energy. The case was selected for scrutiny under CASS and Notice, under Section 143(2) of the Income Tax Act, was issued. The Assessment Officer completed the assessment under Section 143(3), making the following deductions,

(3.) Before the appellate authority, the assessee contended that he had total turnover of Rs.74,26,272/-, through sale of power generated out of windmill and admitted Rs.65,12,277/- as income from windmill business and claimed deduction under Section 80-IA. Placing reliance on a decision in Velayudhaswamy Spinning Mills (P) Ltd. v. Assistant Commissioner of Income-Tax, 2012 340 ITR 477, the Commissioner of Income-Tax, Tiruchirapalli, directed to Assessing Officer to allow deduction claimed by the assessee, under Section 80-IA, to the tune of Rs.65,12,277/- and observed that if the Hon'ble Apex Court reverses the decision given by this Court in Velayudhaswamy Spinning Mills Pvt. Ltd.,'s case (stated supra), the Assessing Officer may accordingly take suitable remedial action.