Sai Life Sciences Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-3(1), Hyderabad

ITA 1745/Hyd/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3210 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 19-02-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 27-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: R V N SASTRY
• Keywords: Additional evidence
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER I.T.A. NO. 1745/HYD/2018 ASSESSMENT YEAR: 2013-14 SAI LIFE SCIENCES LTD., HYDERABAD [PAN: AAECS6143F] VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI R.V.N. SASTRY, AR FOR REVENUE : SHRI Y.V.S.T. SAI, DR DATE OF HEARING : 19-02-2019 DATE OF PRONOUNCEMENT : 27-02-2019 O R D E R PER SMT. P. MADHAVI DEVI, J.M. : THIS IS ASSESSEES APPEAL FOR THE AY. 2013-14, AGAI NST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, HYDERABAD, DATED 20-06-2018. 2. BRIEF FACTS OF THE CASE ARE THAT, THE ASSESSEE-COMPAN Y, ENGAGED IN THE BUSINESS OF EXPORT OF PHARMACEUTICAL PR ODUCTS, E-FILED ITS RETURN OF INCOME FOR THE AY. 2013-14 ON 28 -11-2014 ADMITTING A LOSS OF RS. (-)18,95,00,621/-. ITA. NO. 1745/HYD/2018 :- 2 -: 3. DURING THE ASSESSMENT PROCEEDINGS U/S. 143(3) OF TH E INCOME TAX ACT [ACT], ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS CLAIMED DEDUCTION U/S. 35(2AB) OF THE AC T ON THE GROUND THAT IT WAS ENGAGED IN THE BUSINESS OF BIO-TECHN OLOGY. ASSESSEE WAS THEREFORE ASKED TO FURNISH APPROVAL FROM THE PRESCRIBED AUTHORITY IN FORM 3 CL AND FORM 3 CM. AS SESSEE COULD NOT FURNISH THE SAME. THEREFORE, THE CLAIM OF DE DUCTION WAS DISALLOWED. 3.1. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), ALONG WITH APPROVALS RECEIVED FROM THE CONCE RNED AUTHORITY FOR THE AYS. 2012-13 AND 2013-14. 4. LD.CIT(A), HOWEVER, OBSERVED THAT THE CONCERNED AUTHORITIES HAVE APPROVED THE ASSESSEES ACTIVITY ONLY FOR THE FY. 2012-13 AND THAT THE ASSESSEE HAS FAILED TO FURNIS H FORM 3 CL AND 3 CM FOR THE RELEVANT ASSESSMENT YEAR. HE ACCORDINGLY CONFIRMED THE DISALLOWANCE AND THE ASSESS EE IS IN SECOND APPEAL BEFORE US. 5. BEFORE US, THE ASSESSEE HAS FILED AN APPLICATION F OR ADMISSION OF ADDITIONAL EVIDENCE IN FORM 3 CL AND 3 CM, FOR THE RELEVANT ASSESSMENT YEAR, WHICH HAS BEEN OBTAINED SUBSEQUENTLY. 6. LD. COUNSEL FOR THE ASSESSEE THEREFORE PRAYED FOR ADMISSION OF ADDITIONAL EVIDENCE AND REMITTANCE TO THE AUTHORITIES BELOW FOR VERIFICATION, IF NECESSARY. ITA. NO. 1745/HYD/2018 :- 3 -: 7. LD.DR HAD NO OBJECTION FOR REMANDING THE ISSUE TO TH E FILE OF ASSESSING OFFICER FOR VERIFICATION OF THE CLA IM OF ASSESSEE IN VIEW OF THE SUBSEQUENT FORMS OBTAINED BY THE ASSESS EE. 8. IN VIEW OF THE SAME, WE DEEM IT FIT AND PROPER TO RE MAND THE ISSUE TO THE FILE OF ASSESSING OFFICER TO VERIFY, I F THE FORM 3 CL AND 3 CM ARE FOR THE RELEVANT ASSESSMENT YEAR ARE I N ORDER AND IF THE SAME ARE FOUND TO BE IN ORDER, THE DEDUCTIO N U/S. 35(2AB) SHALL BE ALLOWED. ASSESSEES APPEAL IS TREAT ED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH FEBRUARY, 2019 SD/- SD/- (S. RIFAUR RAHMAN) (P. MADHAVI DEVI ) ACCOUNTANT MEMBER JUDICIAL MEMB ER HYDERABAD, DATED 27 TH FEBRUARY, 2019 TNMM ITA. NO. 1745/HYD/2018 :- 4 -: COPY TO : 1. SAI LIFE SCIENCES LTD., L-4, SLN TERMINUS, SURVE Y NO. 133, GACHIBOWLI-MIYAPUR HIGHWAY, NEAR BOTANICAL GARDENS-KONDAPUR, GACHIBOWLI, HYDERABAD. 2. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1), HYDERABAD. 3. CIT(APPEALS)-3, HYDERABAD. 4. PR.CIT-3, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.