Celestial Bio Labs Ltd., Hyderabad V. Asst.CIT,Circle - 2(1), Hyderabad

ITA 20/HYD/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6030 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 02-03-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 06-01-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Assessee Lawyers: S RAMA RAO
• Keywords: Depreciation; Assessment record
• Section: 263

Judgement Text

1 ITA.NO.20/HYD/2014 CELESTIAL BIO LABS, HYDERABAD. IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA.NO.20/HYD/2014 ASSESSMENT YEAR 2006-2007 CELESTIAL BIO LABS LTD., HYDERABAD. PAN AABCC4698Q VS. ACIT, CIRCLE-2(1) HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO FOR REVENUE : SHRI K.J. RAO DATE OF HEARING : 23.03.2017 DATE OF PRONOUNCEMENT : 23.03.2017 ORDER PER D. MANMOHAN, V.P. THIS APPEAL IS FILED AT THE INSTANCE OF THE ASSESSEE- COMPANY AND IT IS DIRECTED AGAINST THE ORDER PASSED BY CIT(A)- 2, HYDERABAD. 2. AT THE OUTSET, IT MAY BE NOTICED THAT ASSESSEE CLAIMED DEDUCTION UNDER SECTION 10A OF THE ACT FOR THE YEAR UNDE R CONSIDERATION AND DECLARED NIL INCOME. ASSESSMENT WAS COMPLETED AC CORDINGLY. THE ASSESSMENT RECORD WAS EXAMINED BY THE COMMISSIONER, I N EXERCISE OF THE POWERS VESTED IN HIM UNDER SECTION 263 OF THE ACT TO FIND THAT ASSESSEE ITSELF WITHDREW THE CLAIM OF EXEMPTION UNDER S ECTION 10A OF THE ACT IN OTHER YEARS AND HENCE, DEDUCTION ALLOWED B Y THE A.O. UNDER SECTION 10A IS NOT IN ACCORDANCE WITH LAW. HE, THEREFOR E, SET ASIDE THE MATTER TO THE A.O. FOR RE-EXAMINATION. WHILE PASSING THE ORDER ON 30.12.2011, GIVING EFFECT TO THE ORDER PASSED UNDER S ECTION 263, THE A.O. 2 ITA.NO.20/HYD/2014 CELESTIAL BIO LABS, HYDERABAD. DISALLOWED THE CLAIM OF DEDUCTION UNDER SECTION 10A AN D ALSO DISALLOWED EXCESS CLAIM OF DEPRECIATION TO THE TUNE OF RS.7,03,328 . 3. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) WHICH WAS DISMISSED ON 21.10.2013 BY THE CIT(A) AND THUS, A FURTHER APPEAL WAS FILED BEFORE US. 4. THE ALTERNATE CONTENTION OF THE ASSESSEE WAS THAT I T IS ELIGIBLE FOR DEDUCTION UNDER SECTION 35(2AB) OF THE AC T, BEING RESEARCH AND DEVELOPMENT ORGANISATION AND ACCORDINGLY CLAIMED DEDUCTION UNDER SECTIONS 35(1)(I)/35(2AB). ON 02.04.2012 THE AP PROPRIATE AUTHORITY APPROVED THE INSTITUTION AND ISSUED FORM 3CL . BY VIRTUE OF SUCH APPROVAL ASSESSEE SUBMITTED A REVISED COMPUTATION , CLAIMING DEDUCTION ON THE GROUND THAT THOUGH THE A.O. HAD NO OCCA SION TO CONSIDER THE ABOVE CLAIM - WHILE PASSING THE CONSEQUE NTIAL ORDER ON 30.12.2011 - BUT BY VIRTUE OF THE APPROVAL GRANTED BY TH E GOVERNMENT OF INDIA ON 02.04.2012 IT IS ENTITLED FOR WEIGHTED DEDU CTION UNDER SECTION 35(2AB) APART FROM DEDUCTION UNDER SECTION 35 O F THE ACT. ACCORDINGLY A PRAYER WAS MADE BEFORE THE COMMISSIONE R TO CONSIDER THE CLAIM OF DEDUCTION UNDER SECTIONS 35(2AB) AND 35(1)(I ) OF THE ACT. THIS REQUEST APPEARS TO HAVE BEEN CONSIDERED BY THE CIT(A) AND A DIRECTION WAS GIVEN TO THE A.O, VIDE ORDER DATED 01.01.2014. AC CORDINGLY, THE A.O. PASSED CONSEQUENTIAL ORDER DATED 28.08.2014 ALLOWING DEDUCTION UNDER SECTIONS 35(2AB) AND 35(1)(I) OF THE ACT AND THUS, DETE RMINED THE BUSINESS LOSS AT RS.75,76,841. 5. THE LD. D.R. PLACED ON RECORD LETTER DATED 22.03 .2017 OF THE DCIT, CIRCLE-1(2), HYDERABAD TO SUBMIT THAT AGAINST THE ORDER PASSED BY CIT(A) DATED 01.01.2014 THE DEPARTMENT HAS NOT PREFE RRED ANY APPEAL AND THUS, THE DIRECTION GIVEN THEREIN HAD ATTAINE D FINALITY. 3 ITA.NO.20/HYD/2014 CELESTIAL BIO LABS, HYDERABAD. 6. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT AS PER THE DIRECTIONS GIVEN BY THE CIT(A) VIDE ORDER DATED 01 .01.2014 AND AS PER THE CONSEQUENTIAL ORDER DATED 28.08.2014 PASSED B Y DCIT, THE ASSESSEE HAVING OBTAINED THE REQUIRED RELIEF, THE ISSU ES ARISING OUT OF THE ORDER OF THE COMMISSIONER (APPEALS) DATED 21.10.20 13 WOULD BE OF ACADEMIC IMPORTANCE AND HENCE, HE REQUESTED FOR PERM ISSION TO WITHDRAW THE APPEAL. 7. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DISMISS THE APPEAL FILED BY THE ASSESSEE AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 23.03 .2017. SD/- SD/- (S. RIFAUR RAHMAN) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT HYDERABAD, DATED 23 RD MARCH, 2017 VBP/- COPY TO 1. CELESTIAL BIO LABS LTD., HYDERABAD. C/O. SHRI S. R AMA RAO, ADVOCATE, FLAT NO.102, SHRIYAS ELEGANCE, H.NO.3-6-64 3, 2. ACIT, CIRCLE-2(1), HYDERABAD. 3. CIT(A)-2, HYDERABAD. 4. CIT-1, HYDERABAD. 5. D.R. ITAT B BENCH, HYDERABAD. 6. GUARD FILE