Virchow Laboratories Limited, Hyderabad V. Dy. Commissioner of Income Tax , Circle-17(2), Hyderabad

ITA 2141/Hyd/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5701 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2014-2015
• Appeal Filed On: 15-12-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO.2141/HYD/2017 ASSESSMENT YEAR:2014 - 15 VIRCHOW LABORATORIES LIMITED, HYDERABAD. PAN: AAACV 7245 F VS. DCIT, CIRCLE - 17(2), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SMT. S. SANDHYA REVENUE BY: SHRI RAJAT MITRA, DR DATE OF HEARING: 16/09/2020 DATE OF PRONOUNCEMENT: 29 /09/2020 ORDER PER A. MOHAN ALANKAMONY, AM.: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT (A) - 5, HYDERABAD IN APPEAL NO. 0502/2016 - 17/CIT(A) - 5, DATED 26/10/2017 PASSED U/S. 143(3) R.W.S 250(6) OF THE ACT FOR THE AY 2014 - 15. 2. THE ASSESSEE HAS RAISED SIX GROUNDS IN ITS APPEAL AND THEY ARE EXTRACTED HEREIN BELOW FOR REFERENCE: - 2 1. THE ORDER OF THE LD. CIT (A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LD. CIT (A) ERRED IN CONFIRMING THE ADDITION OF RS. 15,05,071/ - MADE BY THE ASSESSING OFFICER BY APPLYING THE PROVISIONS U/S. 14A OF THE ACT. 3. THE LD. CIT (A) OUGHT TO HAVE CONSIDERED THE FACT THAT THE APPELLANT DID NOT DERIVE ANY INCOME WHICH IS EXEMPT FROM TAX AND, THEREFORE, NO DISALLOWANCE U/S. 14A CAN BE MADE. 4. THE LD. CIT (A) ERRED IN CONFIRMING THE DISALLOWANCE OF WEIGHTED DEDUCTION ALLOWABLE U/S. 35(2AB) OF THE ACT OF RS. 77,32,596/ - AND THE DEDUCTION ALLOWABLE UNDER THE SAID SECTION OF RS. 1,54,65,193/ - . 5. THE LD. CIT (A) ERRED IN CONFIRMING CHARGING OF INTEREST U/S. 234C OF THE ACT OF RS. 5,21,722/ - . 6. ANY OTHER GRO UND OR GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING. 3. AT THE OUTSET, WE OBSERVED THAT THE LD. CIT (A) HAS PASSED AN EX - PARTE ORDER BECAUSE NEITHER THE ASSESSEE NOT ITS REPRESENTATIVE APPEARED BEFORE THE LD. CIT (A) ON THE GIVEN DATES OF HEARING . ON QUERY, THE LD. AR PLEADED THAT THE APPEAL OF THE ASSESSEE MAY BE REMITTED BACK TO THE FILE OF LD. CIT (A) FOR FRESH CONSIDERATION. THE LD. DR DID NOT RAISE ANY SERIOUS OBJECTION FOR THE SAME. THEREFORE, IN THE INTEREST OF JUSTICE, WE HEREBY REMIT THE MATTER BACK TO THE FILE OF THE LD. CIT (A) FOR DE NOVO CONSIDERATION THEREBY PROVIDING THE ASSESSEE WITH ONE MORE OPPORTUNITY TO ARGU E ITS CASE BEFORE THE LD. CIT (A). WE ALSO DIRECT THE ASSESSEE AND ITS REPRESENTATIVE TO PROMPTLY CO - OPERATE BEFORE THE LD. CIT (A) IN HIS PROCEEDINGS FAILING WHICH THE LD.CIT (A) SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN 3 ACCORDANCE WITH LAW AND ME RIT BASED ON THE MATERIALS AVAILABLE BEFORE HIM. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE. PRONOUNCED IN THE OPEN COURT ON 29 TH SEPTEMBER, 2020. SD/ - SD/ - (P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 29 TH SEPTEMBER, 2020. OKK COPY TO: - 1 VIRCHOW LABORATORIES LIMITED, PLOT NO.4, S.V. CO - OP, INDUSTRIAL ESTATE, IDA, JEEDIMETLA, HYDERABAD. 2. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE - 17(2), SIGNATURE TOWERS, KONDAPUR, HYDERABAD. 3. THE CIT (APPEALS) - 5, HYDERABAD. 4. THE PRINCIPAL COMMISSIONER OF INCOME TAX - 5, HYDERABAD. 5. THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. 6. GUARD FILE