INTAS PHARMACEUTICALS LTD.,AHMEDABAD V. THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 2 (1)(1), AHMEDABAD

MA 139/AHD/2024

AI Insights

The case involves Intas Pharmaceuticals Ltd., the appellant, contesting a decision by the ACIT Circle-2(1)(1), Ahmedabad, regarding the disallowance of weighted deductions on certain R&D expenses for the Assessment Year 2012-13. The Tribunal had previously ruled on similar issues in the Assessee's favor for the Assessment Years 2013-14 and 2014-15, allowing deductions for expenses related to exhibit batches and other R&D activities. However, for the Assessment Year 2009-10, the Tribunal had ruled against the Assessee on similar grounds. The Assessee sought to rectify the Tribunal's decision for 2012-13 to align with the favorable rulings of 2013-14 and 2014-15, arguing for consistency in the Tribunal's findings. The Tribunal dismissed the application, stating there was no mistake apparent on record and upheld their previous decisions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23298 (ITAT-AHMEDABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-03-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Other Referred Cases: ITA No. 1644/Ahd/2017, ITA No. 1787/Ahd/2017, ITA No. 2013-14, ITA No. 2014-15
• Laws Referred To: Section 35(2AB)
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: Ms. Suchitra Kamble, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Intas Pharmaceuticals Ltd. 203, Chinubhai Center, Off. Nehru Bridge, Ashram Road, Ahmedabad-380009 PAN No. AAAcI5120L (Appellant) Vs The ACIT Circle-2(1)(1), Ahmedabad (Respondent) Assessee Represented: Shri S.N. Soparkar, Sr. Adv. & Shri Parin Shah, A.R. Revenue Represented: Shri Kavan Limbasiya, Sr. D.R. Date of hearing : 07-03-2025 Date of pronouncement : 10-03-2025 आदेश/ORDER PER : SUCHITRA KAMBLE, JUDICIAL MEMBER:- This Miscellaneous Application has been filed by the Applicant in respect of order dated 15-05-2024 passed by this Tribunal in ITA No. 1787/Ahd/2017 for the Assessment Year 2012-13. M.A. No: 139/Ahd/2024 (in ITA No: 1787/Ahd/2017) Assessment Year: 2012-13) M.A. No. 139/Ahd/2024 A.Y. 2012-13 Intas Pharmaceuticals Ltd. Vs. ACIT 2 2. The Ld. A.R. submitted that the Tribunal while adjudicating ground related to disallowance of weighted portion relating to expenditure on the exhibit batches and other expenses has relied upon the Asst. Year 2009-10 and the order passed by the Tribunal in the said Asst. Year was relied. The Ld. A.R. has taken the contention in the Miscellaneous Application as follows: “14. It is most respectfully submitted that above ground has two parts: Part A: Disallowance of weighted portion relating to expenditure on exhibit batches Part B: Disallowance of Other Expenses 4.1.1 With respect to Part A here in above: Hon'ble ITAT observed that Ld. AR submitted that the issue was partly allowed in favour of the assessee by the Tribunal in ITA No. 1644/Ahd/2017 in Assessee's own case of A.Y. 2009-10. As regards the expenses related to exhibit batches amounting to Rs. 599.90 Lakhs, the assessee has lost this issue before Tribunal in A.Y. 2009-10. 4.1.2 The Applicant submits that an identical issue was there in appeals for subsequent years i.e. A.Y. 2013-14 & A.Y. 2014-15, wherein Hon'ble, ITAT has allowed identical ground by observing that expenses like Exhibit Batches, samples / prototype obtained for pilot study, labour cost, staff training etc. in R & D units are clearly for R & D activity only and hence allowable. 4.1.3 Hon'ble ITAT has adjudicated above ground in A.Y. 2013-14 & Α.Υ. 2014-15 on page 25 to 33 (para 37 to 52) of that order which is reproduced hereunder: 52. As for the expenditure incurred on Exhibit Batches and other expenses, the explanation regarding nature of the expenditure being in relation to samples/prototype obtained for pilot studies and in relation to labour cost, staff training etc in the R&D units, they are all clearly incurred for the purpose of R&D activity only, and therefore are also eligible to claim weighted deduction. In view of the above, we hold that the entire claim of expenses u/s 35(2AB) were in accordance with law and called for no disallowance at all. M.A. No. 139/Ahd/2024 A.Y. 2012-13 Intas Pharmaceuticals Ltd. Vs. ACIT 3 Copy of ITAT order for A.Y. 2013-14 & A.Y. 2014-15 is attached herewith. 4.1.3 It is further submitted that Assessee has already filed Misc. Application in Α.Υ. 2009-10 το Α.Υ. 2011-12 with respect to above issue and accordingly to have consistency in finding of the Hon'ble Tribunal on same set of facts from A.Y. 2009-10 to A.Y. 2014-15, the appellant prays to rectify above finding as per Hon'ble ITAT order for A.Y. 2013-14 & Α.Υ. 2014-15. 4.1.44.1.4 With respect to Part B here in above: It is submitted that Hon'ble Tribunal has discussed arguments of Ld. AR in para 9. Thereafter in para 10, the arguments of Ld. DR were recorded but thereafter, there is no specific finding with respect to the above issue of \"Other Expenses\" in para 11 of the order. It is also submitted that claim of other expenses was already allowed in A.Y. 2013-14 & Α.Υ. 2014-15. (Refer para 4.1.3. hereinabove). Therefore, appellant prays to rectify above finding as per Hon'ble ITAT order for A.Y. 2013-14 & A.Y. 2014-15.” 3. The Ld. D.R. submitted that the Tribunal has concisely taken the view after taking into cognizance the assessee’s submission, there is no mistake apparent on record. 4. We have heard both the parties and perused the materials available on record. At the time of hearing, the assessee/Ld. A.R. has relied on the Asst. Years 2009-10 to 2011-12 order which was passed by the Tribunal and can be seen in the chart given by the assessee at the time of hearing. Hence, there is no mistake apparent on record. The Miscellaneous Application filed by the Assessee is not proper at this juncture. 5. The contention of the Ld. A.R. that the assessee has filed Misc. Application in Asst. Years 2009-10 to 2011-12 in consonance with the Asst. Years 2013-14 to 2015-16 will not suffice as there is no mistake on the part M.A. No. 139/Ahd/2024 A.Y. 2012-13 Intas Pharmaceuticals Ltd. Vs. ACIT 4 of the Tribunal by deciding this issue and the assessee was aware about the orders at that particular time of hearing itself. Thus the Misc. Application filed by the Assessee is dismissed. 6. In the result, Miscellaneous Application filed by the Assessee is dismissed. Order pronounced in the open court on 10-03-2025 Sd/- Sd/- (NARENDRA PRASAD SINHA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 10/03/2025 आदेश क\u0006 \u0007\bत ल\fप अ\u000fे\fषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद "