Deccan Health Care Private Limited, , Hyderabad V. Asst, Commissioner of Income Tax, Circle-17(1), , Hyderabad

ITA 1302/Hyd/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4301 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 30-08-2021
• Assessment Year: 2012-2013
• Appeal Filed On: 26-07-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHANA RAO
• Section: 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO. A.Y. APPELLANT RESPONDENT 1301/HYD/2017 2011-12 DECCAN HEALTH CARE LIMITED, HYDERABAD [PAN: AABCD0352N] ITO, WARD-17(1), HYDERABAD 1302/HYD/2017 2012-13 ACIT, CIRCLE-17(1), HYDERABAD FOR ASSESSEE : SHRI P.MURALI MOHANA RAO, AR FOR REVENUE : SHRI ROHIT MUJUMDAR, DR DATE OF HEARING : 30-08-2021 DATE OF PRONOUNCEMENT : 04-10-2021 O R D E R PER S.S.GODARA, J.M. : THESE TWO ASSESSEES APPEALS FOR AYS.2011-12 AND 20 12- 13 ARISE AGAINST THE CIT(A)-5, HYDERABADS COMMON ORD ER DATED 31-03-2017 IN APPEAL NOS.0691, 0690 / 2014-15 / CIT(A)-5, INVOLVING PROCEEDINGS U/S.143(3) R.W.S.14 7 & U/S.143(3) [FOR AY.2012-13] OF THE INCOME TAX ACT, 19 61 [IN SHORT, THE ACT]; RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILES PERUSED. 2. COMING TO THE FIRST AND FOREMOST IDENTICAL ISSUE OF ASSESSEES RESEARCH AND DEVELOPMENT DISALLOWANCE U/S .35 OF THE ACT INVOLVING CORRESPONDING SUMS OF RS.1,03,70,86 5/- ITA NOS. 1301 & 1302/HYD/2017 :- 2 -: EACH AND BOTH THE LEARNED LOWER REPRESENTATIVES INVITED OUR ATTENTION TO THE TRIBUNALS ORDER IN ASSESSEES APPEALS ITA NOS.557/HYD/2016 AND 1277/HYD/2017 FOR AY.2010-11 RESTORING THE SAME BACK TO THE ASSESSING OFFICER FOR HI S AFRESH FACTUAL VERIFICATION OF THE CORRESPONDING EXPENSES. W E THUS ADOPT THE VERY COURSE OF ACTION HEREIN AS WELL. THE A SSESSEE IS DIRECTED TO APPEAR BEFORE THE ASSESSING OFFICER ON OR BEFORE 15- 12-2021 WITH ALL THE RELEVANT DOCUMENTARY EVIDENCES; AT ITS OWN RISK AND RESPONSIBILITY TO BE FOLLOWED BY THREE EFFECTIVE OPPORTUNITIES OF HEARING. ORDERED ACCORDINGLY. THIS IDENTICAL FIRST AND FOREMOST GROUND IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. 3. NEXT COMES THE IDENTICAL LATTER SUBSTANTIVE GROUND O F DISALLOWANCE OF ASSESSEES ADVERTISEMENT AND PUBLICIT Y, MARKETING AND REFUSAL CHARGES EXPENSES OF RS.67,96,7 20/- AND RS.51,07,116/- AND RS.67,96,720/-; RESPECTIVELY IN BOTH THE TWIN ASSESSMENT YEARS. SUFFICE TO SAY, THE ASSESSING OFFICER AS WELL AS THE CIT(A) HAVE MADE THE IMPUGNED DISALLOWANCE(S) QUOTING THE ASSESSEES FAILURE IN FILING ALL THE SUPPORTIVE EVID ENCES PROVIDING THE SAME TO HAVE BEEN INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF THE BUSINESS. THE FACT ALSO REMAINS THAT THE IMPUGNED LATTER HEAD OF DISALLOWANCE INVOLVES DAY-TO-DAY SELLING/MARKETING EXPENSES WHICH CANNOT BE PER SE RULED OUT. WE THEREFORE ARE OF THE OPINION THAT A LUMP-SUM ESTIMATION OF 6% PERTAINING TO THE INSTANT IDENT ICAL LATTER ISSUE WOULD BE JUST AND PROPER IN BOTH THESE ASS ESSMENT YEARS WITH A RIDER THAT THE SAME SHALL NOT BE TAKEN AS A ITA NOS. 1301 & 1302/HYD/2017 :- 3 -: PRECEDENT IN ANY OTHER CASE. NECESSARY COMPUTATION SHA LL FOLLOW AS PER LAW. NO OTHER GROUND HAS BEEN PRESSED BEFORE US. 4. THESE TWO APPEALS OF ASSESSEE ARE TREATED AS PARTL Y ALLOWED IN ABOVE TERMS. A COPY OF THIS COMMON ORDER B E PLACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH OCTOBER, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 04-10-2021 TNMM ITA NOS. 1301 & 1302/HYD/2017 :- 4 -: COPY TO : 1.DECCAN HEALTH CARE LIMITED, C/O. P.MURALI & CO., CHARTERED ACCOUNTANTS, 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD. 2.THE ACIT, CIRCLE-17(1), HYDERABAD. 3.THE ITO, WARD-17(1), HYDERABAD. 4.THE CIT(APPEALS)-5, HYDERABAD. 5.THE PR.CIT-5, HYDERABAD. 6.D.R. ITAT, HYDERABAD. 7.GUARD FILE.