Assistant Commissioner of Income-tax, V. Holdn Medical Laboratories Pvt. Ltd., Nashik

ITA 1799/PUN/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85004 (ITAT-PUNE)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 04-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revised return

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.1799/PN/2013 (A.Y: 2006-07) ACIT, CIRCLE-2, NASHIK APPELLANT VS. HOLDEN MEDICAL LABORATORIES PVT. LTD., CIT(A)-35, MIDC, MALEGAON, SINNAR, NASHIK 422103 PAN: AABCH2172G RESPONDENT APPELLANT BY : SHRI RAJESH DAMOR RESPONDENT BY : NONE DATE OF HEARING : 22.09.2014 DATE OF PRONOUNCEMENT : 23.09.2014 ORDER PER SHAILENDRA KUMAR YADAV : THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I, NASHIK DATED 18.07.2013 FOR A.Y. 2006-07 ON THE FOLLOWING GROUND S. 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A)-I, NASHIK WAS JUSTIFIED IN DELETING THE ADDITION OF RS.23,76,305/- MADE ON ACCOUNT OF DISALLOWANCE OF LAB TESTING EXPENSES, IGNORING THE PROVISIONS OF SECTION 40(A)(IA) OF THE INCOME TAX A CT, 1961?. 2. THE APPELLANT PRAYS THE ORDER OF THE ASSESSING OFFI CER MAY BE RESTORED. 3. THE APPELLANT PRAYS TO ADDUCE SUCH FURTHER EVIDENCE TO SUBSTANTIATE HIS CASE. ITA NO.1799/PN/13 HOLDEN MEDICAL LABORATORIES PVT. LTD. 4. THE APPELLANT PRAYS LEAVE TO ADD, ALTER, CLARIFY, A MEND AND OR WITHDRAW ANY GROUNDS OF APPEAL AS AND WHEN THE OCCASION DEMANDS. 2. THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGE D IN MANUFACTURING OF PHARMACEUTICAL TABLETS. THE ASSES SEE FILED A RETURN OF INCOME DECLARING TOTAL INCOME OF RS.29,40 ,722/- ON 29.11.2006. THE ASSESSEE FILED REVISED RETURN OF I NCOME DECLARING TOTAL LOSS OF RS.8,61,294/- ON 30.03.2008. THE ASS ESSING OFFICER SCRUTINIZED THE RETURN OF INCOME AND MADE ADDITION ON THE FOLLOWING COUNTS. OUT OF BUSINESS PROMOTION EXPENSES RS.1,22,108/- OUT OF TRAVELLING, CONVEYANCE, TELEPHONE AND PETROL EXPENSES RS.50,000/- OUT OF CLEARING AND FORWARDING CHARGES RS.11,78,18 9/- U/S 36(1)(VA) RS.57,956/- U/S 40(A)(IA) RS.23,76,305/- U/S 40(A)(IA) RS.1,34,740/- 2.1 OUT OF THE ABOVE DISALLOWANCES, THE ASSESSEE HA S FILED APPEAL IN RESPECT OF ADDITION OUT OF CLEARING AND FORWARDI NG CHARGES OF RS.11,78,189/- AND RS.23,76,305/- U/S.40(A)(IA) OF THE ACT. REGARDING RS.11,78,189/-, NOTHING WAS BROUGHT TO OU R KNOWLEDGE. SO, THIS IS NOT SUBJECT MATTER BEFORE US. REGARDIN G DISALLOWANCE OF RS.23,76,305/- MADE BY THE ASSESSING OFFICER U/S.40 (A)(IA) OF THE ACT, RELIEF WAS GRANTED BY THE CIT(A). THE SAME HA S BEEN OPPOSED BEFORE US ON BEHALF OF THE REVENUE. ON THE OTHER H AND, NONE APPEARED ON BEHALF OF THE ASSESSEE. SO, THE MATTER IS BEING DECIDED EXPARTE. 2.2 AFTER GOING THROUGH THE ARGUMENTS OF LEARNED DE PARTMENTAL REPRESENTATIVE AND MATERIAL ON RECORD, WE FIND THAT THE ISSUE OF DISALLOWANCE OF RS.23,76,305/- U/S. 40(A)(IA) OF TH E ACT ON ACCOUNT OF LAB TESTING AND ANALYSIS IS COVERED BY THE ORDER OF ITAT, PUNE IN ITA NO.1799/PN/13 HOLDEN MEDICAL LABORATORIES PVT. LTD. ASSESSEES OWN CASE FOR A.Y. 2005-06 VIDE ORDER DAT ED 11.01.2011, WHEREIN THE TRIBUNAL HAD ALLOWED THE CLAIM OF THE A SSESSEE. NOTHING CONTRARY HAS BEEN BROUGHT TO OUR KNOWLEDGE ON BEHALF OF THE REVENUE. IN VIEW OF THIS, REASONED FACTUAL AND LEGAL FINDING OF CIT(A), WHEREBY, HE DELETED THE ADDITION BY FOLLOWI NG THE TRIBUNAL ORDER IN THE ASSESSEES OWN CASE, NEEDS NO INTERFER ENCE FROM OUR SIDE. WE UPHOLD THE SAME. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 23 RD DAY OF SEPTEMBER, 2014. SD/- SD/- (R.K. PANDA) (SHAILENDRA KUMAR YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED THE 23 RD SEPTEMBER, 2014 GCVSR COPY TO:- 1) THE DEPARTMENT 2) ASSESSEE 3) THE CIT(A)-I, NASHIK 4) THE CIT-I, NASHIK 5) THE DR, A BENCH, I.T.A.T., PUNE. 6) GUARD FILE BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, PUNE.