GLAXOSMITHKLINE PHARMACEUTICALS LIMITED ,MUMBAI V. THE COMMISSIONER OF INCOME TAX, APPEAL ADD/JCIT (A)-1, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-7(1)(1), MUMBAI

ITA 1312/MUM/2024

AI Insights

The case involves Glaxosmithkline Pharmaceuticals Limited appealing against the order of the Addl./JCIT(A)-1, Visakhapatnam, which confirmed an earlier order under section 143(3) read with section 254 of the Income-tax Act, 1961. The primary grievances included the lack of an opportunity to be heard, miscommunication regarding compliance with hearing notices, and issues related to the Direct Tax Vivad Se Vishwas Scheme application which was mistakenly attributed to a merged entity, Burroughs Welcome India Limited. The Tribunal found that the appeal was dismissed mistakenly and thus restored it for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472748 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2001-2002
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KISHOR DHULE; DR
• Assessee Lawyers: ANISH THACKAR; AR
• Keywords: Opportunity of being heard
• Section: 143(3); 250; 13; 244A

Judgement Text

" | आयकर अपीलीय अिधकरण \fा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 1312/Mum/2024 Assessment Year: 2001-02 Glaxosmithkline Pharmaceuticals Limited 252 GSK House Dr. Annie Besant Road Worli Mumbai - 400030 [PAN: AAACG4414B] Vs The Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Visakhapatnam/Deputy Commissioner of Income-tax, Circle-7(1)(1), Ayakar Bhavan, Mumbai - 400020 अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Anish Thackar, A/R Revenue by : Shri Dr. Kishor Dhule, CIT D/R सुनवाई की तारीख/Date of Hearing : 18/02/2025 घोषणा की तारीख /Date of Pronouncement: 18/02/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order of the ld. Addl./JCIT(A)-1, Visakhapatnam [hereinafter ‘the ld. CIT(A)] dated 25/01/2024, pertaining to AY 2001-02. 2. The grievance of the assessee reads as under:- “The Appellant objects to the order, dated 25 January 2024, passed by the learned Additional/ Joint Commissioner of Income-tax - (Appeals) - 1, Visakhapatnam ['learned CIT(A)] under Section 250 of the Income-tax Act, 1961 (the Act) confirming the order passed under section 143(3) read with section 254 of the Act dated 13 March 2020 passed by the Deputy Commissioner of Income-tax- 7(1)(1), Mumbai (learned AO') on the following grounds of appeal, which are independent and without prejudice to one another: On the facts and in circumstances of the case and in law, the learned CIT (A): Ground of Appeal No. 1: Opportunity of being heard not granted I.T.A. No. 1312/Mum/2024 2 1. erred in disposing-off the appeal ex-parte without granting any opportunity of being heard to the Appellant and thereby violating the violating the principles of natural justice; Ground of Appeal No. 2: Submission filed but not taken into consideration 2. erred in holding that no compliance was made by the Appellant for the hearing notice despite the fact that written submission dated 8 December 2023 was already e-filed by the Appellant in response to hearing notice dated 23 November 2023 issued under section 250 of the Act; Ground of Appeal No. 3: Direct Tax Vivad Se Vishwas Scheme ('VSV') application not filed by Appellant for the proceedings in case of Appellant but in case of merged entity, Burroughs Welcome India Limited ('BWIL'\") 3. failed to appreciate that the application under the VSV Scheme was filed in relation to appeal against 143(3) read with section 254 (appeal no. 10463/2016-17) filed for Burroughs Welcome India Limited for AY 2001-02, which had merged with the Appellant company and not in relaion to the Appellant's appeal; Ground of Appeal No. 4: Order giving effect to the Hon'ble Tribunal's order is barred by limitation 4. failed to appreciate that the order giving effect dated 13 March 2020 to the Hon'ble Tribunal's order is passed beyond the time limit prescribed under section 153 of the Act; Ground of Appeal No. 5: Relief granted by Tribunal in respect of closing balance of advance license not considered 5. erred in not directing the learned AO to follow the Hon'ble Tribunal's directions and reduce the closing balance of advance license of INR 8,19,19,078 while computing the total income on giving effect to the Tribunal order; Ground of Appeal No. 6-7: Reduction of tax base due to Appellant 6. erred in not appreciating that the learned AO, while calculating the principal amount of tax refund due to the Appellant, erred in reducing the amount of refund already granted including the interest under section 244A already granted entirely against the principal component; 7. ought to have directed the learned AO to first adjust the refund granted against interest payable to the Appellant and balance, if any, against the principal component; Ground of Appeal No. 8-9: Short grant of interest under section 244A of the Act 8. erred in not directing to grant interest under section 244A of the Act upto the date of receipt/ adjustment of refund; 9. without prejudice to the above, ought to have directed the learned AO to grant compensatory interest for inordinate delay in grant of the amount of refund including unpaid interest under section 244A of the Act. The Appellant craves leave to add to, amend, alter, vary, omit or substitute the above grounds of appeal or add a new ground or grounds at any time before or at the time of the hearing of the appeal.” I.T.A. No. 1312/Mum/2024 3 3. Heard the ld. Counsel for the assessee. The sum and substance of the submission of the ld. Counsel is that there was one company called Burroughs Welcome India Limited (BWIL) which had merged with the assessee. The erstwhile company had filed an application under Direct Tax Vivad Se Vishwas Scheme. The appeal under consideration was dismissed by the Addl./JCIT holding the appeal as infructuous. In light of the application under Direct Tax Vivad Se Vishwas Scheme. 4. We are of the considered view that the appeal has been dismissed as infructuous under a mistaken identity, therefore, in the interest of justice, this appeal is restored to the file of the Addl./JCIT(A) to be considered on merits of the case after affording a reasonable and adequate opportunity of being heard to the assessee. 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 18th February, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE-PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 18/02/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs I.T.A. No. 1312/Mum/2024 4 आदेश की \u0015ितिलिप अ\u001aेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001c / The Appellant 2. \u0015\u001dथ\u001c / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\" ) अपील ( / The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "