M/s. International Flavours & Fragrances India Ltd., CHENNAI V. DCIT, CHENNAI

ITA 1675/CHNY/1994

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61156 (ITAT-CHENNAI)
• Duration Of Justice: 17 year(s) 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-06-2012
• Assessment Year: 1991-1992
• Appeal Filed On: 29-06-1994
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIK RAMADITYA SR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE -PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.1675/MDS/1994 (ASSESSMENT YEAR: 1991-92) M/S. INTERNATIONAL FLAVOURS AND FRAGRANCES INDIA LTD., [FORMERLY KNOWN AS M/S. BUSH BOAKE ALLEN (INDIA) LTD., C/O. M/S. FRASER & ROSS, 169, NORTH USMAN ROAD, CHENNAI-17. PAN:47-004-CV-7112 VS. THE DEPUTY COMMISSIONER OF INCOME TAX, SPECIAL RANGE CENTRAL III, CHENNAI-600 034. (APPELLANT) (RESPONDENT) APPELLANT BY : MR. SAROJ KUMAR PARIDA RESPONDENT BY : MR. VIK RAMADITYA, SR. AR DATE OF HEARING : 4 TH JUNE ,2012 DATE OF PRONOUNCEMENT : 4 TH JUNE, 2012 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE PRESENT APPEAL, FILED BY THE ASSESSEE, HAS BEE N REMANDED BACK BY THE HONBLE MADRAS HIGH COURT VIDE JUDGEMENT DATED 12.07.2011. THE APPEAL WAS FILED BY THE ASSESSEE BEFORE THE HONBLE HIGH COURT OF MADRAS IN TAX CASE (APPEAL) NO.142 OF 2005 RAISING THE FOLLOWING TWO SUBSTANTIAL QUESTIONS OF LAW:- 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE TRIBUNAL WAS RIGHT ITA NO.1675/MDS /1994 2 IN HOLDING THAT THE RESEARCH & DEVELOPMENT EXPENSES OUGHT TO BE DEDUCTED WHILE COMPUTING THE INCOME DERIVED FROM THE NEW INDUSTRIAL UNDERTAKING FOR THE PAYMENT OF COMPUTING RELIEF UNDER SECTION 80HH AND 80I? 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE TRIBUNAL WAS RIGHT IN HOLDING THAT RESEARCH AND DEVELOPMENT EXPENSES WERE RELATED TO THE PROFITS DERIVED BY THE UNIT ELIGIBLE FOR RELIEF UNDER SECTION 80HH AND 80I? 2. THE MATTER HAS BEEN REMITTED BY THE HONBLE HIGH COURT TO THE TRIBUNAL TO CONSIDER WHETHER THERE WAS RESE ARCH AND DEVELOPMENT UNDERTAKEN REGARDING THE PRODUCT THAT I S MANUFACTURED AT THE CHITOOR UNIT. THE HONBLE COU RT FURTHER POINTED OUT THAT IF THE RESEARCH DID NOT PERTAIN TO THE PRODUCT MANUFACTURED AT CHITHOOR, THEN THE ALLOCATION OF TH E EXPENSES TO CHITHOOR UNIT WILL BE JUSTIFIED. THE MATTER HAS BEEN REMANDED BACK TO THE TRIBUNAL FOR FRESH CONSIDERATI ON. 3. AFTER HEARING BOTH THE PARTIES AND GOING THROUGH THE RECORDS, WE ARE OF THE CONSIDERED OPINION THAT IN T HE LIGHT OF THE DIRECTIONS OF THE HONBLE HIGH COURT, THE MATTE R HAS TO BE DECIDED AFRESH BY TAKING FRESH EVIDENCE AND SOME OT HER ITA NO.1675/MDS /1994 3 RELEVANT DOCUMENTS WHICH ARE NOT AVAILABLE IN THE F ILE. BOTH THE PARTIES HAVE AGREED TO THIS. THEREFORE, WE DEEM IT APPROPRIATE TO REMIT THE MATTER BACK TO THE ASSESSI NG OFFICER TO DECIDE IT AFRESH IN THE LIGHT OF THE DIRECTIONS OF THE HONBLE HIGH COURT, THE FACTS OF THE CASE, RELEVANT DOCUMEN TS SUBMITTED BY THE ASSESSEE AND THE LAW LAID DOWN BY THE COURTS. LIBERTY IS GRANTED TO THE ASSESSEE TO FURNI SH FRESH DETAILS/INFORMATION/DOCUMENTS, IF SO ADVISED, BEFOR E THE ASSESSING OFFICER WITH REGARD TO THE QUESTION REMI TTED BY THE HONBLE HIGH COURT VIDE ITS JUDGEMENT DATED 12.7.20 11. 4. THUS, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON MONDAY, THE 4 TH OF JUNE, 2012 AT CHENNAI. SD/- SD/- ( DR. O.K.NARAYANAN ) ( VIKAS AWASTHY ) VICE PRESIDENT JUDICIAL MEMBER CHENNAI, DATED THE 4 TH JUNE, 2012. SOMU COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F .