Concord Drugs Limited, Hyderabad V. Deputy Commissioner of Income Tax, Circle-1(2), Hyderabad

ITA 1904/Hyd/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5794 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 21-01-2020
• Assessment Year: 2011-2012
• Appeal Filed On: 21-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Application of stay; TDS; Set aside
• Section: 10AA; 40(a)(ia); 80IB; 201(1); 10

Judgement Text

ITA NO 1904 OF 2017 AND SA NO.5 OF 2020 CONCORD DRU GS LTD HYDERABAD. PAGE 9 OF 10 U/S 80IB OF THE ACT WHICH IS THE ALTERNATE CLAIM OF THE ASSESSEE TO THE CLAIM OF DEDUCTION U/S 10AA OF THE ACT. 16. THE LEARNED DR WAS ALSO HEARD, AND WE ARE OF TH E OPINION THAT THE ASSESSEES CLAIM OF EXPENDITURE IS TO BE CONSIDERED BY THE AO AFRESH. IN VIEW OF THE SAME, W E DEEM IT FIT AND PROPER TO REMAND THE ISSUE TO THE FILE OF THE A O FOR DE NOVO CONSIDERATION AFRESH. FURTHER, WE ALSO MAKE IT CLEA R THAT IF THE EXPENDITURE IS DISALLOWED, WHICH WOULD IN TURN INCR EASE THE INCOME OF THE ASSESSEE, THE SAME IS ALLOWABLE AS DE DUCTION WHICH IS ALLOWABLE TO THE ASSESSEE U/S 80IB OF THE ACT. 17. FURTHER, WITH REGARD TO THE DISALLOWANCE OF EXPENDITURE, THE ASSESSEE SUBMITTED THAT THERE IS A DISALLOWANCE OF SALARIES AND PROFESSIONAL CHARGES ON THE GROUND THAT THERE WAS NO TDS MADE BY THE ASSESSEE AND THEREFORE, THE DISA LLOWANCE WAS PROPOSED TO BE UPHELD U/S 40(A)(IA) OF THE ACT. HE SUBMITTED THAT THE ASSESSEE HAS NOT BEEN TREATED AS ASSESSEE IN D EFAULT U/S 201(1) OF THE ACT FOR SUCH AN AMOUNT AND THEREFORE, THE DISALLOWANCE U/S 40(A)(IA) IS NOT TO BE UPHELD. SIN CE WE HAVE SET ASIDE THE ENTIRE ISSUE TO THE FILE OF THE AO, WE DI RECT THE AO TO CONSIDER THE ASSESSEES ARGUMENTS ON THIS ISSUE AS WELL. 18. THE ONLY OTHER ISSUE ON WHICH THE ASSESSEE IS I N APPEAL IS AGAINST THE DISALLOWANCE U/S 10AA OF THE ACT. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IN ITS RETURN OF INCOME HAD CLAIMED DEDUCTION U/S 10AA OF THE ACT BUT ALTERNATIVELY HAS FILED THE REVISED COMPUTATION OF INCOME MAKING THE ALTERNATIVE CLAIM U/S 80IB OF THE ACT. H E SUBMITTED THAT SINCE THE ASSESSEE IS ELIGIBLE FOR DEDUCTION U /S 80IB, THE ITA NO 1904 OF 2017 AND SA NO.5 OF 2020 CONCORD DRU GS LTD HYDERABAD. PAGE 10 OF 10 ASSESSEES CLAIM SHOULD BE CONSIDERED AND THE ADDIT IONAL GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE TOWARDS THIS A LTERNATE CLAIM. 19. AFTER HEARING BOTH THE PARTIES, WE DEEM IT FIT AND PROPER TO ADMIT THE ADDITIONAL GROUNDS ON THIS ISSU E AND REMAND THE SAME TO THE FILE OF THE AO WITH A DIRECTION TO CONSIDER THE ASSESSEES CLAIM OF DEDUCTION U/S 80IB OF THE ACT A ND IF THE ASSESSEE SATISFIES ALL THE CONDITIONS FOR ALLOWANCE OF DEDUCTION U/S 80IB, WE DIRECT THE AO TO ALLOW THE SAME. IN VIEW O F THE SAME, THE ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATIST ICAL PURPOSES. 20. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES AND THE STAY APPLICATION I S DISMISSED AS INFRUCTUOUS. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JANUARY, 2020. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 31 ST JANUARY, 2020. VINODAN/SPS COPY TO: 1 P. MURALI & CO. C.A, 6-3-655/2/3 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 500082 2 DY. CIT, CIRCLE 1(2) HYDERABAD 3 CIT (A)-1 HYDERABAD 4 PR. CIT 1, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER