Madras High Court
The Commissioner Of Income Tax vs M/S. Neyveli Lignite Corporation ... on 2 August, 2022
Tax Case Appeal Nos.421, 422,423, 424 & 425/2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 02.08.2022
CORAM :
THE HON'BLE MR. JUSTICE R. MAHADEVAN
AND
THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ
Tax Case Appeal Nos.421 to 425 of 2021
The Commissioner of Income Tax,
Chennai ... Appellant in all appeals
Vs.
M/s. Neyveli Lignite Corporation Ltd.,
Income Tax Section, Corporate Circle,
Neyveli 607 801 ... Respondent in all appeals
Tax Case Appeals filed under Section 260A of the Income Tax Act,
1961 against the common order 28.04.2017 passed by the Income Tax
Appellate Tribunal, Madras “B” Bench, in I.T.A.Nos.2029/Mds/2013,
1983/Mds/2011, 2140/Mds/2013, 2077/Mds/2013 & 855/Mds/2013.
For Appellant : Mr. T. Ravikumar
Standing Counsel in all TCAs
For Respondent : Mr.Lakshmi Kumaran in all TCAs
Page 1/8
https://www.mhc.tn.gov.in/judis
Tax Case Appeal Nos.421, 422,423, 424 & 425/2021
COMMON JUDGMENT
(Judgment was delivered by R. MAHADEVAN, J.)
These Tax Case Appeals have been filed by the appellant / Revenue
challenging the common order dated 28.04.2017 passed by the Income Tax
Appellate Tribunal, Madras 'B' Bench, relating to the respective
Assessment Years 2007-08, 2008-09, 2010-11, 2010-11 and 2009-10, by
raising the following substantial questions of law:-
TCA.No.421 of 2021:
“1. Whether the drainage and water supply system are to be
treated as a plant and Machinery instead of building for the
purpose of claiming depreciation?
2. Whether the Tribunal ought to have applied the decision
of the Apex Court in the case of Gwalior Rayon Silk Mfg Ld –
196 ITR 149 wherein it has held that drains are integral part
of the building and are meant for convenience and enjoyment
of the building?”
Page 2/8
https://www.mhc.tn.gov.in/judis
Tax Case Appeal Nos.421, 422,423, 424 & 425/2021
TCA.No.422 of 2021:
“1. Whether the Tribunal was right in allowing the
prepaid expenditure by changing the method of accounting
especially when the same did not relate to the current year
expenditure nor did it accrue to the assessee in the current
year?
2. Whether the Tribunal was right in deleting the
disallowance made u/s.80IA in respect of expansion of existing
unit when the I.T.Act mandates that the deduction is to be
allowed only in respect of new units?”
TCA.No.423 of 2021
“Whether on the facts and circumstances of the case the
Tribunal was right in allowing Overburden Removal
Expenditure is to be allowed as a revenue expenditure instead
of treating it as Capital expenditure on account of the same
being a mine development expenditure which could be claimed
only under section 35E of the Income Tax Act that too after
the commencement of commercial production which is not the
case on hand?”
Page 3/8
https://www.mhc.tn.gov.in/judis
Tax Case Appeal Nos.421, 422,423, 424 & 425/2021
T.C.A.No. 424 of 2021
“ 1. Whether Drainage and water supply system are
to be treated as a plant and machinery instead of building
for the purpose of claiming depreciation?
2. Whether the Tribunal ought to have applied the
decision of the Apex Court in the case of Gwalior Rayon
Silk Mfg. Ld -196 ITR 149 wherein, it has held that drains
are integral part of the building and meant for convenience
and enjoyment of the building?
3. Whether the Tribunal was right in allowing the
prepaid expenditure by changing the method of accounting
especially when the same did not relate to the current year
expenditure not did it accrue in the current year to the
assessee?
4. Whether the Tribunal was right in deleting the
disallowance made u/s.80IA in respect of expansion of
existing unit when the I.T Act mandates the deduction is to
be allowed only in respect of new units?”
Page 4/8
https://www.mhc.tn.gov.in/judis
Tax Case Appeal Nos.421, 422,423, 424 & 425/2021
TCA.No.425 of 2021
“1. Whether Drainage and water supply system can
be treated as a plant and Machinery instead of Building
while claiming depreciation?
2. Whether the Tribunal ought to have applied the
decision of the Apex Court in the case of Gwalior Rayon
Silk Mfg Ld – 196 ITR 149 wherein it has held that drains
are integral part of the building and meant for convenience
and enjoyment of the building?
3. Whether the Tribunal was right in deleting the
disallowance made u/s.80IA by placing reliance on order
for the AY 2001-02 which relates to mining activity and did
not involve manufacture of any articles or thing, whereas in
the present asst. year involved it was a case pertaining to
deduction in respect of expansion of existing unit is
allowable when the I.T.Act mandate deduction is allowable
in respect of new unit only?
2.When the matter was taken up for consideration, the learned counsel
appearing for the respondent / assessee submitted that during the pendency
Page 5/8
https://www.mhc.tn.gov.in/judis
Tax Case Appeal Nos.421, 422,423, 424 & 425/2021
of these tax case appeals, the assessee has availed the benefit conferred
under the Direct Tax Vivad Se Vishwas Act, 2020 and filed necessary
declarations, which were accepted and Form 5 / order for full and final
settlement of tax arrears, was also issued by the Income tax department, on
28.10.2021 and 09.11.2011.
3.The aforesaid submission made by the learned counsel for the
respondent/assessee has also been fairly conceded by the learned senior
standing counsel appearing for the appellant/ Revenue.
4.In view of the subsequent development, this court is of the opinion
that nothing survives for adjudication in these appeals. Recording the
submission so made by the learned counsel on either side, the Tax Case
Appeals stand disposed of. No costs.
[R.M.D,J.] [M.S.Q, J.]
02.08.2022
msr
Internet : Yes
Index : Yes / No
Page 6/8
https://www.mhc.tn.gov.in/judis
Tax Case Appeal Nos.421, 422,423, 424 & 425/2021
To
1. Income Tax Appellate Tribunal, Madras “B” Bench, Chennai.
2. The Commissioner of Income Tax,
Chennai
3. The Deputy Commissioner of Income Tax,
Large Taxpayer Unit, Chennai – 600 034.
Page 7/8
https://www.mhc.tn.gov.in/judis
Tax Case Appeal Nos.421, 422,423, 424 & 425/2021
R. MAHADEVAN, J.
and
MOHAMMED SHAFFIQ, J.
msr
Tax Case Appeal Nos.421 to 425 of 2021
02.08.2022
Page 8/8
https://www.mhc.tn.gov.in/judis
