GHARDA CHEMICALS LTD, MUMBAI V. ADDL CIT CIR 9(1), MUMBAI

ITA 1375/MUM/2011

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3687 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: K
• Next Hearing Date: 16-03-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 15-02-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DEBASHISH CHANDRA
• Assessee Lawyers: GOPAL BOHRA
• Keywords: Depreciation

Judgement Text

, , , , INCOME-TAX APPELLATE TRIBUNAL -KBENCH MUMBAI BEFORE S/SH.RAJENDRA,ACCOUNTANT MEMBER AND C.N. PRASAD,JUDICIAL MEMBER ./I.T.A./1375/MUM/2011 , ,, , /ASSESSMENT YEAR: 2006-07 GHARDA CHEMICALS LIMITED 5/6, JER MANSION, W.P. VARDE MARG, OFF TURNER ROAD, BANDRA (W),MUMBAI-50. PAN: AAACG 1255 E VS. DCIT, CIRCLE-9(1) AAYAKAR BHAVAN, MUMBAI-400020. ./I.T.A./2321/MUM/2011 , ,, , /ASSESSMENT YEAR: 2006-07 ACIT, RANGE -9(1) AAYAKAR BHAVAN,MUMBAI-400 020. VS. M/S.GHARDA CHEMICALS LIMITED MUMBAI-400 050. ./I.T.A./6588/MUM/2011 , ,, , /ASSESSMENT YEAR: 2008-09 ACIT, RANGE -9(1) AAYAKAR BHAVAN,MUMBAI-400 020. VS. M/S.GHARDA CHEMICALS LIMITED MUMBAI-400 050. ( /APPELLANT ) ( / RESPONDENT ) /C.O/.NO.139/M/2012 , / ASSESSMENT YEAR: 2008-09 GHARDA CHEMICALS LIMITED MUMBAI-400 050. VS. DCIT, CIRCLE-9(1) AAYAKAR BHAVAN, MUMBAI-400020. (CROSS OBJECTOR) ( / RESPONDENT ) REVENUE BY: SHRI DEBASHISH CHANDRA ASSESSEE BY: SHRI GOPAL BOHRA / DATE OF HEARING: 13.04.2016 / DATE OF PRONOUNCEMENT: 29.04.2016 ,1961 254(1) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) PER RAJENDRA, AM - CHALLENGING THE ORDERS OF THE CS.IT(A)THE ASSESSING OFFICER (AO)AND THE ASSESSEE HAVE FILED THE APPEALS/CROSS OBJECTIONS FOR THE ABOVE MENTIONE D ASSESSMENT YEARS(AY.S.),RAISING VARIOUS GROUNDS OF APPEAL.ASSESSEE-COMPANY,ENGAGED IN THE B USINESS OF MANUFACTURE AND SALE OF PESTI-CIDES,INSECTICIDES, WEEDICIDES,VETERINARY-DRU GS AND POLYMERS.THE DETAILS OF FILING OF RETURNS,RETURNED INCOMES,ASSESSED INCOMES ETC.CAN B E SUMMARISED AS UNDER: A.Y. ROI FILED ON RETURNED INCOME(RS.) ASSESSMENT DT. ASSESSED INCOME(RS.) DT. OF ORDERS OF CIT(A) 2006-07 29.11.2006 74,78,62,086/- 29.12.2008 160,49 ,85,410/- 13.01.2011 2008-09 31.10.2008 34,46,96,081/- 30.11.2010 81,06, 19,820/- 28.06.2011 ITA/1375/MUM/2011 , ,, , AY.2006-07: 2. THE ONLY GROUND OF APPEAL IS NOT ALLOWING ADDITIONA L DEDUCTION OF 50% (I.E 150% -100%) UNDER SECTION 35(2AB)(1) OF THE ACT IN RESPECT OF T HE EXPENDITURE OF RS. 15.57 CRORES INCURRED ON IN-HOUSE RESEARCH AND DEVELOPMENT ACTIV ITY CARRIED OUT ITS DOMBIVILI R&D FACILITY. WHILE DECIDING THE APPEALS FOR THE AY.S.2004-05 AND 2005-06( ITA/5474/MUM/2009& ITA /5348/MUM/2009AND ITA/8376/MUM/2010& ITA/8758/MUM/2 010 ),WE HAVE SENT BACK THE MATTER TO THE FILE OF THE AO FOR FRESH ADJUDICA TION.FOLLOWING THE SAME,GROUND NO.1 IS DECIDED IN FAVOUR OF THE ASSESSEE,IN PART. 1375/11-(3+1C.O.)GHARDA CHEMICALS 2 ITA/2321/MUM/2011 , ,, , AY.2006-07: 3 .FIRST GROUND DEALS WITH DELETION OF DISALLOWANCE O F INTEREST AMOUNTING TO RS.19.94 CRORES., U/S.36(1)(III)OF THE ACT.WHILE DECIDING THE APPEALS FOR THE AY.S.2004-05 AND 2005-06 (SUPRA), WE HAVE DECIDED THE ISSUE AGAINST THE AO.FOLLOWING THE SAME,GROUND NO.1 IS DISMISSED. 4. NEXT GROUND OF APPEAL IS ABOUT DELETING THE ADDITIO N OF RS.23.20 CRORES ON ACCOUNT OF UNUTILISED MODVAT CREDIT.WE HAVE RESTORED BACK THE ISSUE TO THE FILE OF THE AO FOR FRESH ADJUDICATION.HE IS DIRECTED TO DECIDE THE ISSUE AS PER THE DIRECTIONS GIVEN IN THE ORDER FOR THE AY.2003-04.GROUND NO.2 IS DECIDED IN FAVOUR OF THE AO,IN PART. 5. NEXT GROUND DEALS WITH DELETING THE ADDITION OF RS. 27.54 CRORES ON ACCOUNT OF EXCISE DUTY ON CLOSING STOCK.AS THE ISSUE IS DIRECTLY RELATED W ITH THE EARLIER ISSUE,SO,SAME IS ALSO RESTORED BACK TO THE FILE OF THE AO,WHO WOULD DECIDE IT AFTE R HEARING THE ASSESSEE.GROUND NO.3 IS PARTLY ALLOWED. 6. LAST GROUND (GOA-5)PERTAINS TO DELETION OF ADDITION OF RS.66 CRORES MADE U/S.2(22)(E)OF THE ACT.FOLLOWING OUR ORDER FOR THE AY.S.2005-05(SU PRA),GROUND NO.5 IS DISMISSED. ITA/6588/MUM/2001-AY.2008-09: 7. THE SOLITARY GROUND RAISED BY THE ASSESSEE IS ABOUT DELETING THE ADDITION OF RS.3.95 CRORES ON ACCOUNT OF EXCESS DEPRECIATION ON INTANGIBLE ASS ETS.WE HAVE DECIDED THE ISSUE WHILE ADJUDICATING THE APPEAL FOR THE EARLIER YEARS(SUPRA ).FOLLOWING THE SAME,WE DISMISS THE GROUND RAISED BY THE AO. C.O/.NO.139/M/2012 , ,, , AY.2008-09: 8. DURING THE COURSE OF HEARING BEFORE US,THE AR OF TH E ASSESSE DID NOT PRESS GROUND NO.1. HENCE,SAME STANDS DISMISSED AS NOT PRESSED. 9.SECOND GROUND AS ABOUT NOT MENTIONING THE CORRECT FIGURE OF DEPRECIATION WITH REGARD TO THE IPR.BEFORE US,IT WAS STATED THAT THE FAA HAD WRONGL Y MENTIONED THE FIGURE OF RS.3,69,36,681 /- AS AGAINST THE CORRECT AMOUNT OF RS.3,95,51,615/ -.WE ARE DIRECTING THE AO VERIFY THE FIGURE AND TAKE THE CORRECT FIGURE.GROUND NO.2 IS PARTLY A LLOWED. AS A RESULT, APPEALS FILED BY THE ASSESSEE AND THE AO FOR THE AY.06-07 ARE PARTLY ALLOWED. APPEAL OF THE AO FOR THE AY.2008-09 STAND DISMISSED AND CO FOR THAT YEAR IS PARTLY ALLOWED. . . 2006-07 . . . 2008-09 . . 2008-09 . ORDER PRONOUNCED I N THE OPEN COURT ON 29 TH APRIL, 2016. 29 , 2016 SD/- SD/- ( / C.N. PRASAD ) ( / RAJENDRA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 29.04.2016. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1375/11-(3+1C.O.)GHARDA CHEMICALS 3 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR A BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.