w w w . L a w y e r S e r v i c e s . i n



Pandian Chemicals Ltd. v/s Deputy Commissioner of Income-tax


Company & Directors' Information:- PANDIAN CHEMICALS LIMITED [Active] CIN = U24297TN1972PLC006245

Company & Directors' Information:- R. CHEMICALS PRIVATE LIMITED [Strike Off] CIN = U24117DL1991PTC046105

Company & Directors' Information:- PANDIAN AND CO PRIVATE LIMITED [Active] CIN = U05110TZ1947PTC000150

Company & Directors' Information:- A.N.D CHEMICALS PRIVATE LIMITED [Active] CIN = U24100UP2014PTC064372

    IT Appeal No. 2613 (Mds.) of 2014

    Decided On, 27 January 2015

    At, Income Tax Appellate Tribunal Chennai

    By, THE HONOURABLE MR. B.R. BASKARAN
    By, ACCOUNTANT MEMBER & THE HONOURABLE MR. VIKAS AWASTHY
    By, JUDICIAL MEMBER

    For the Appellant: S. Chandrasekaran, CA. For the Respondent: A.V. Sreekanth, Advocate.



Judgment Text

Vikas Awasthy, Judicial Member

1. The appeal has been filed by the assessee against the order of the Commissioner of Income-tax (Appeals)-II, Madurai dated August 18, 2014.

2. The assessee is a public limited company engaged in the business of manufacturing chlorate and generation of power through windmill. The assessee filed its return of income for the assessment year 2010-11 on September 27, 2010 admitting income of Rs. 2,58,83,550. Thereafter, the assessee filed revised return on October 12, 2010 declaring income of Rs. 2,44,57,950. The case of the assessee was selected for scrutiny and notice under section 143(2) was issued on August 30, 2011. During the course of scrutiny assessment, the Assessing Officer observed that the assessee had claimed expenditure under the head "repairs and maintenance" to the tune of Rs. 92,00,000 for replacing old windmill with the new one. The Assessing Officer held that the expenditure is capital in nature.

3. Aggrieved by the addition/disallowance made by the Assessing Officer vide order dated March 28, 2013, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) vide impugned order upheld the findings of the Assessing Officer. Now, the assessee has come in the second appeal against the findings of the Commissioner of Income-tax (Appeals).

4. Shri. S. Chandrasekaran, appearing on behalf of the assessee, submitted that the learned Commissioner of Income-tax (Appeals) erred in coming to the conclusion that the assessee had replaced existing windmill with the new windmill. One of the windmill installed by the assessee suffered huge damage caused by natural calamities. The assessee has only replaced the rotor blades and part of the stem of windmill. It is not the case where the entire windmill has been replaced with the new one. The learned authorised representative to support his submission placed reliance on the decision of the hon'ble Supreme Court of India in the case of CIT v. Saravana Spg. Mills (P.) Ltd.[2007] 293 ITR 201/163 Taxman 201 and the decision of the hon'ble Allahabad High Court in the case of CIT v. Renu Sagar Power Co. Ltd. [2008] 298 ITR 94/169 Taxman 175 .

5. On the other hand, Shri. A. V. Sreekanth, representing the Department, supported the order of the Commissioner of Income-tax (Appeals). The learned Departmental representative pointed out that in the grounds of appeal raised before the Commissioner of Income-tax (Appeals), the assessee had admitted the fact that the windmill of similar capacity was purchased and installed in place of totally damaged windmill. The learned Departmental representative further submitted that it is nowhere stated by the assessee that only certain parts of the windmill which were damaged were replaced.

6. We have heard the submissions made by the representatives of both sides and perused the orders of the authorities below. We have also examined the decision on which the learned authorised representative of the assessee has placed reliance. The contention of the learned authorised representative before us is that only damaged parts of windmill were replaced and not the whole windmill has been replaced with the new one.

7. We find that the authorities below have denied the relief claimed by the assessee on the ground that the assessee has replaced old windmill with the new one. As pointed out by the Departmental representative, in the grounds of appeal before the Commissioner of Income-tax (Appeals), the assessee has made following submissions.

"In your appellant's HTSC No. 2 there were two windmills each of 250 KW capacity. The 500KW windmills used to generate power for supply to the grid. In the above HTSC one No. 250 KW wind turbine (TCL2) was totally damaged due to natural calamity. Hence a similar capacity windmill was purchased and installed in the place of the totally damaged windmill."

8. It is not clear from the records before us whether the assessee has replaced only damaged parts of the existing windmill or has replaced entire old windmill with the new one. These facts have to be ascertained from books, purchase order, job sheet, etc. In case, the assessee has replaced only damaged parts of the windmill, without there being substantial change in original performance and generation capacity of windmill the expenditure is allowable as claimed by the assessee. We find that the judgment of the hon'ble Allahabad High Court in the case of Renu Sagar Power Co. Ltd. (supra) also supports the contentions of the learned authorised representative.

9. Needless to say that if it is case of replacing a new windmill in the place of old windmill, the expenditure would certainly be capital in nature. The file is remitted back

Please Login To View The Full Judgment!

to the Assessing Officer with a direction to decide the issue afresh after verifying the factual aspect. The Assessing Officer while deciding the issue de novo shall grant an opportunity of hearing to the assessee, in accordance with law. 10. The second issue in appeal with respect to treatment of insurance claim is not pressed by the learned authorised representative of the assessee. The same is dismissed as not pressed. 11. In the result, the appeal of the assessee is partly allowed for statistical purposes.
O R







Judgements of Similar Parties

20-05-2020 Ananthi Rajendran Versus M.S. Bharathi Pandian Before the Madurai Bench of Madras High Court
20-03-2020 M/S. Govind Minerals & Chemicals Versus M/s. Star Automobiles (M.P) Ltd. & Another National Consumer Disputes Redressal Commission NCDRC
06-03-2020 Commissioner of Central Excise, Nagpur Versus M/s Universal Ferro & Allied Chemicals Ltd. & Another Supreme Court of India
05-03-2020 National Insurance Co. Ltd., Chennai Versus S. Chitirai Pandian & Others High Court of Judicature at Madras
02-03-2020 Hikal Chemicals Workers Union Versus Bharatiya Kamdar Karmachari Mahasangh & Another High Court of Judicature at Bombay
04-02-2020 G.N. Pandian Versus S. Vasudevan & Others High Court of Judicature at Madras
23-01-2020 R. Backialakshmi & Others Versus K. Pandian Before the Madurai Bench of Madras High Court
16-01-2020 Kingfsher Finvest India Ltd & Another Versus Zuari Fertilisers & Chemicals & Another High Court of Judicature at Bombay
10-01-2020 M/s. Pandian Fragrances (P) Limited, Rep. by its Director, K.K. Dinakaran Versus The Tahsildhar, Mannurpet, Thiruvallur & Others High Court of Judicature at Madras
08-01-2020 Wayne Burt Petro Chemicals Private Limited, Rep.by its Senior Manager Finance, V.K. Sivasubramanian & Another Versus The Registrar of Companies, Ministry of corporate affairs, Chennai & Others High Court of Judicature at Madras
07-01-2020 Wayne Burt Petro Chemicals Private Limited, Rep. by its Senior Manager-Finance V.K. Sivasubramanian, Irungattukottai, Sriperumbudur & Another Versus M/s. Cetex Petro Chemicals Limited, Rep. by its Managing Director, Sivagnanam Govindasamy Ilanahai, having its registered office at Manali, Chennai & Others High Court of Judicature at Madras
02-01-2020 Himadri Speciality Chemicals and Industries Limited V/S Principal Commissioner of Service Tax-I, Kolkata Customs Excise Service Tax Appellate Tribunal East Zonal Bench Bench, Kolkata
13-12-2019 Saurashtra Chemicals Ltd. (Presently Known As Saurashtra Chemicals Division Of Nirma Ltd.) Versus National Insurance Co. Limited Supreme Court of India
20-11-2019 The District Collector, Tirunelveli & Others Versus A. Kavu Pandian & Another Before the Madurai Bench of Madras High Court
14-11-2019 M/s. Sree Ramcides Chemicals Pvt. Ltd., Represented by its Managing Director, R. Gopal Versus The Additional Director General, Director General of Central Excise Intelligence, Chennai High Court of Judicature at Madras
12-11-2019 M/s. Sri Amman Chemicals, Rep. by its Partner P. Kumaresan Versus The Additional Secretary & Appellate Authority, Ministry of Commerce & Industry, Department of Industrial Policy & Promotion, New Delhi & Others High Court of Judicature at Madras
05-11-2019 Sun Pharmaceutical Industries Ltd V/S Union of India Department of Chemicals And Petrochemicals and Others. Supreme Court of India
31-10-2019 Puro Wellness Pvt. Ltd. Versus Tata Chemicals Ltd. High Court of Delhi
12-09-2019 Thangaraj Pandian Versus The State of Tamil Nadu, Rep. by its Secretary, Department of Home, Fort. St. George, Chennai & Others Before the Madurai Bench of Madras High Court
22-08-2019 M. Pandian Versus The Director of Medical Services, Chennai & Others High Court of Judicature at Madras
21-08-2019 Hindustan Agro Chemicals Limited Versus Registrar Of Companies, Rajasthan Corporate Bhawan High Court of Rajasthan Jaipur Bench
19-08-2019 M/s. Paragon Chemicals, Represented by its Partner Ajitraj Kankriya, Chennai Versus The Commissioner of Customs, Chennai & Others High Court of Judicature at Madras
07-08-2019 A.V.R.M.V. Sankaranarayanan (Died) & Another Versus Sri Navaneethakrishnaswamy Temple, Veerakeralamputhur, Through its, Hereditary Trustee, S.M. Pandian (Died) & Others Before the Madurai Bench of Madras High Court
06-08-2019 V. Mallika Versus Varguna Pandian, Uthiramerur Taluk High Court of Judicature at Madras
22-07-2019 M/s. Ecologique Petro Chemicals Pvt. Ltd. Versus M/s. Research Center for Fuel Generation & Others High Court of for the State of Telangana
09-07-2019 Bengal Chemicals & Pharmaceuticals Limited & Others Versus Ajit Nain & Another Supreme Court of India
14-06-2019 M/s. Assam State Fertilizer & Chemicals Ltd. Rep. by its Managing Director & Others Versus The State of Assam, Rep. by the Commissioner & Secretary to The Govt. of Assam & Others High Court of Gauhati
13-06-2019 Ketan Krishnakant Amin Versus M/s. Thirumalai Chemicals Limited & Another High Court of Judicature at Bombay
03-06-2019 T. Arivarasu Pandian Versus The Director of Public Libraries, Office of the Directorate of Public Libraries, Chennai & Others Before the Madurai Bench of Madras High Court
18-04-2019 The Commissioner of CGST, ST & Central Excise Versus Rashtriya Chemicals & Fertilizers Ltd. High Court of Judicature at Bombay
11-04-2019 Chairman & Managing Director, The Fertilizers And Chemicals Tranvancore Ltd. & Another Versus General Secretary FACT Employees Association & Others Supreme Court of India
22-03-2019 K.S. Sivathiakani(died) & Others Versus R.P. Arunachala Pandian & Another Before the Madurai Bench of Madras High Court
22-03-2019 Shivanand & Others Versus Prabhulingeshwar Sugars & Chemicals Limited, Bagalkot & Others High Court of Karnataka Circuit Bench At Dharwad
20-03-2019 M/s. Nagarjuna Agro Chemicals Pvt. Ltd., Begumpet, Hyderabad, Rep. by its Director Mukund Daga Versus M/s. Sarda Agro Oils Limited, Panjugatta, Hyderabad, rep. by its Managing Director & Others High Court of for the State of Telangana
15-03-2019 Tata Chemicals Ltd. Versus Puro Wellness Pvt. Ltd. High Court of Delhi
06-02-2019 Official Liquidator, M/s. Metallic Soaps & Chemicals (Pvt.) Ltd. Versus Manager, Karnataka State Financial Corporation & Another Supreme Court of India
31-01-2019 In the Matter of: M/s. Chennai Chemicals Private Limited & Others National Company Law Tribunal Chennai
30-01-2019 B. John Pandian Versus The State rep. by the Superintendent of Police, Ramanathapuram & Others Before the Madurai Bench of Madras High Court
29-01-2019 Punjab Alkalies & Chemicals Ltd. Versus Punjab State Electricity Regulatory Commission Through it's Secretary, Chandigarh & Others Appellate Tribunal for Electricity Appellate Jurisdiction
24-01-2019 M/s. Sri Varahi Chemicals, Represented by its Partner, L.P. Sanjeev Kumar Jain Versus The Commissioner of Customs, Chennai Commissionerate-II, Chennai & Another High Court of Judicature at Madras
22-01-2019 R. Kanagavel Pandian Versus The State Government of Tamil Nadu, Represented through it Chief Secretary, Secretariat, Chennai & Others Before the Madurai Bench of Madras High Court
21-01-2019 M. Dhanesekara Pandian & Another Versus The Registrar Before the Madurai Bench of Madras High Court
08-01-2019 Thomas Baker (Chemicals) P. Ltd Versus Dcit 4(3)(1), Mumbai Income Tax Appellate Tribunal Mumbai
31-12-2018 Nagarjuna Fertilizers & Chemicals Limited Versus Tecnimont SpA & Others High Court of Andhra Pradesh
21-12-2018 M/s. Sunrise Oleo Chemicals Ltd., (in Liquidation), rep. by Official Liquidator, High Court of Andhra Pradesh Versus M/s. Reliance Asset Reconstruction Co., Ltd., Rep. by its vice President & Another High Court of Andhra Pradesh
18-12-2018 The Maharashtra State Electricity Distribution Company Limited, Through its Executive Engineer & Another Versus M/s. Vega Chemicals Pvt. Ltd. In the High Court of Bombay at Aurangabad
12-12-2018 S. Muthu Ganesa Pandian Versus A.M. Ramachandran Before the Madurai Bench of Madras High Court
27-11-2018 Keytrade AG, Zurcherstrasse 68, CH-8800 Thalwil, Switzerland Through General Power of Attorney Holder Mayank Versus Nagarjuna Fertilizers & Chemicals Ltd. In the High Court of Judicature at Hyderabad
27-11-2018 Revathi Versus Pandian High Court of Judicature at Madras
20-11-2018 Acit Corporate Range 1, Chennai Versus Dharani Sugars & Chemicals Pvt. Income Tax Appellate Tribunal Chennai
23-10-2018 Pandian Versus State rep., by Inspector of Police, CBI, ACB, Chennai Before the Madurai Bench of Madras High Court
16-10-2018 Crop Chemicals India Ltd. & Another Versus State of Punjab High Court of Punjab and Haryana
15-10-2018 M/s. Vardhan Nutritions & Assistant Commissioner of Chemicals Pvt. Ltd, Raigad Income Tax Appellate Tribunal Pune
10-10-2018 Radha Chemicals Versus Union of India Supreme Court of India
09-10-2018 Fertilizers & Chemicals Travancore Limited, Udyogamandal Versus Commissioner of Income Tax, Cochin High Court of Kerala
09-10-2018 Huntsman International (India) Pvt. Ltd. Versus Kleur Speciality Chemicals Pvt. Ltd. (Abiss Textile Soulutions Pvt. Ltd.) & Others High Court of Delhi
08-10-2018 V. Sakthivel Pandian Versus The Director of School Education, Chennai & Others High Court of Judicature at Madras
19-09-2018 Willowood Chemicals Pvt. Ltd. Versus Union of India High Court of Gujarat At Ahmedabad
11-09-2018 The Commissioner of Central Excise, Chennai IV Commissionerate, Chennai Versus Surya Fine Chemicals, Chennai & Another High Court of Judicature at Madras
07-09-2018 Europa Chemicals Private Versus Income Tax Officer 5(1)(4) Income Tax Appellate Tribunal Mumbai
30-08-2018 R. Pandian Versus The Commissioner, Greater Chennai Corporation, Chennai & Others High Court of Judicature at Madras
29-08-2018 Dharti Agro Chemicals Pvt. Ltd., through its General Manager, Sanjay & Another Versus The Commissioner of Central Excise, Nagpur-II & Another In the High Court of Bombay at Nagpur
24-08-2018 Gail (India) Limited Versus Newton Engineering & Chemicals Ltd. High Court of Delhi
24-08-2018 Rinki Plastics Private Limited Versus GD Petro Chemicals Private Limited High Court of Judicature at Calcutta
11-08-2018 T. Kamaraja Pandian Versus State rep by the Deputy Superintendent of Police, Dindigul Before the Madurai Bench of Madras High Court
08-08-2018 MVR Chemicals & Oils Versus C.C.E.-Bangalore-I Customs Excise Service Tax Appellate Tribunal South Zonal Bench At Bangalore
06-08-2018 M/s. Popular Paints & Chemicals & Others Versus Commissioner of Central Excise & Customs Raipur Customs Excise Service Tax Appellate Tribunal Principal Bench New Delhi
19-07-2018 Gaja Trustee Company Pvt. Ltd. & Others Versus Haldia Coke & Chemicals Pvt. Ltd National Company Law Appellate Tribunal
03-07-2018 Tuticorin Alkali Chemicals & Fertilisers Ltd., East Coast Centre, Chennai Versus The Tamilnadu Electrictity Board Rep.by its Chairman Anna Salai, Chennai & Another High Court of Judicature at Madras
02-07-2018 P. Suryanarayana Versus Fertilizers & Chemicals of Travancore Ltd. & Others High Court of Kerala
29-06-2018 Torrent Pharmaceuticals Ltd V/S Comed Chemicals Pvt. Ltd High Court of Gujarat At Ahmedabad
26-06-2018 Dr. S. Soundara Pandian & Others Versus The District Consumer Disputes Redressal Forum Chennai (North), Mylapore & Another High Court of Judicature at Madras
20-06-2018 M/s. Sri Gayatri Fertilisers & Chemicals, rep. by its Managing Partner, A Venkateswara Rao & Another Versus M/s. Madras Fertilisers Ltd., Rep. by its Executive Director Personnel Administration, R.R. Pandalai In the High Court of Judicature at Hyderabad
18-06-2018 T. Paul Premkumar Versus Government of India, Represented by its Secretary, Department of Fertilizers, Ministry of Chemicals & Fertilizers, New Delhi & Another High Court of Judicature at Madras
14-06-2018 V.K. Pandian Versus The State of Tamil Nadu & Others Before the Madurai Bench of Madras High Court
11-06-2018 M/s. Shasun Pharmaceuticals Limited, Rep. by its General Manager (IR), C.D. Surendran, (Formerly known as M/s.Shasun Chemicals & Drugs Limited) Versus The Regional Provident Fund Commissioner-II(C & R) High Court of Judicature at Madras
30-05-2018 M/s. Alpha Omega Resolution Chemicals Pvt. Ltd. Versus The Manager ICICI Bank Ltd & Others High Court of Delhi
21-05-2018 Quality Export & Chemicals V/S Commissioner of Central Excise, Hapur Customs Excise Service Tax Appellate Tribunal Regional Bench Allahabad
17-05-2018 Piyanshu Chemicals Pvt. Ltd. V/S CCCE & ST, Hyderabad-II Customs Excise Service Tax Appellate Tribunal Regional Bench Hyderabad
03-05-2018 APL Peroxy, Chemicals Limited V/S CCCE & ST, Guntur Customs Excise Service Tax Appellate Tribunal Regional Bench Hyderabad
25-04-2018 Nirai Pandian Versus The Regional Director, Reserve Bank of India, Chennai & Others Before the Madurai Bench of Madras High Court
20-04-2018 Twenty First Century Pharmaceutical Pvt. Ltd., SIDCO Estate, Chennai Versus National Pharmaceutical Pricing Authorities, Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Government of India, New Delhi & Another High Court of Judicature at Madras
12-04-2018 M. Ct. Muthiah Chettiar Hr. Sec. School, Teaching & Non-Teaching Staff Association, Rep. by its President, V. Sakthivel Pandian Versus The Director of School Education & Others High Court of Judicature at Madras
06-04-2018 Star Alloys & Chemicals Pvt. Ltd V/S CCE & ST, Raipur Customs Excise Service Tax Appellate Tribunal Principal Bench New Delhi
22-03-2018 Neeta Chemicals (I) Pvt. Ltd. Versus State Bank of India National Company Law Appellate Tribunal
16-03-2018 Hindustan Organic Chemicals Ltd. Versus ICI India Ltd. High Court of Judicature at Bombay
15-03-2018 Ashoka Distillers & Chemicals Pvt. Ltd Versus Ads Spirits Pvt. Ltd High Court of Delhi
05-03-2018 R. Dhansekara Pandian & Others Versus The Registrar, Madurai Kamaraj University & Another Before the Madurai Bench of Madras High Court
27-02-2018 The Fertilizers & Chemicals Travancore Limited, Represented by Its Chairman & Managing Director, Kochi & Others Versus DR. A.J. Augustine & Another High Court of Kerala
27-02-2018 The Commissioner of Income Tax, Cochin Versus The Fertilizers & Chemicals Travancore Ltd., Udyogamandal High Court of Kerala
27-02-2018 Saraswati Agro Chemicals India Ltd V/S CCE, Jammu & Kashmir Customs Excise Service Tax Appellate Tribunal Chandigarh Bench
20-02-2018 A. Maileri Pandian Versus The Chief Educational Officer, Tirunelveli & Others Before the Madurai Bench of Madras High Court
19-02-2018 M/s. Ashoka Chemicals (India) Versus M/s. Bhartiya Hindu Shudhi Sabha Trust (Regd) High Court of Delhi
15-02-2018 Tamil Nadu Harijan Sevak Sangh, By its President, S.Pandian Versus Arulmigu Kamachiamman Koil of 24 Manai Telegu Chettiar, Nehru Street, represented by its President, R.K. Ponraj & Another High Court of Judicature at Madras
13-02-2018 A. Pandian Versus The District Collector, Madurai District & Another Before the Madurai Bench of Madras High Court
08-02-2018 Pacific Gulf Shipping (Singapore) Pte. Ltd. Versus S.R.K. Chemicals Limited & Another High Court of Judicature at Bombay
07-02-2018 Subhas & Others Versus Prabhulingeshwar Sugars & Chemicals Limited, Rep. by its Executive Director, Rajendrakumar S. Gudagunti & Another High Court of Karnataka Circuit Bench At Dharwad
05-02-2018 Rencal Chemicals (India) Ltd. Versus Securities & Exchange Board of India SEBI Bhavan SEBI Securities Exchange Board of India Securities Appellate Tribunal
05-02-2018 M/s. Yoshiaki Chemicals Co. (P) Ltd, A Private Limited Company, Rep by its Director Versus Sivasakthi Traders a Partnership Firm Rep by its Partner, Tiruppur ? 2 & Others High Court of Judicature at Madras
30-01-2018 Pandian Versus Thiagarajan High Court of Judicature at Madras


LawyerServices is a Premium Legal Tech solution.


Lawyers, Law Firms, Government Departments and Corporates rely on us for, Workflow Automation, Data Aggregation, Timely Updates, Case Management, Intelligent Research, Latest Legal Data Updates and a LOT more!

If you are a legal professional, CONTACT US, in order to see how our UNIQUE solution can benefit your organization.

Features Intro Close Box