The ACIT.(OSD), Circle-5, Ahmedabad V. Paras Pharmaceuticals Ltd., Ahmedabad

ITA 2963/AHD/2010

• Counselvise Citation: 296320514 RSA 2010
• Duration Of Justice: 3 year(s) 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 25-02-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 29-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K C MATHEWS
• Assessee Lawyers: ASHWIN C SHAH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEMBER ITA NO.2962 & 2963/AHD/2010 A.YS. 2003-04, 2006-07 ACIT (OSD), CIRCLE-5, AHMEDABAD. VS M/S. PARAS PHARMACEUTICALS PVT. LTD., PARAS HOUSE, 6-B, SATTAR TALUKA SOCIETY ASHRAM ROAD, AHMEDABAD. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI K.C. MATHEWS, SR.D.R., ASSESSEE(S) BY : SHRI ASHWIN C. SHAH, A.R. / DATE OF HEARING : 25/02/2014 / DATE OF PRONOUNCEMENT: 26/02/2014 / O R D E R PER SHRI MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER THESE TWO APPEALS HAVE BEEN FILED BY THE REVENUE. O NE IS IN RESPECT OF DELETION OF ADDITION OF RS.21,78,000/- M ADE ON ACCOUNT OF DISALLOWANCE OF INTEREST EXPENDITURE PERTAINING TO A.Y. 2006-07, ARISING FROM THE ORDER OF LEARNED CIT(A)-XVI, AHMEDABAD, DA TED 23.08.2010. THE OTHER APPEAL OF THE REVENUE DEPARTMENT IS IN RE SPECT OF DELETION OF PENALTY LEVIED U/S. 271(1)(C) OF RS.6,10,260/- ARIS ING FROM THE ORDER OF LEARNED CIT(A)-XVI, AHMEDABAD, DATED 16.08.2010. 2. FOR A.Y. 2006-07, WHILE DELETING THE ADDITION, I T WAS NOTED BY LEARNED CIT(A) THAT IN A.Y. 2003-04 AND A.Y. 2004-0 5, THE HONBLE ITA NO.2962 & 2963/AHD/2010 ACIT (OSD), CIRCLE-5, AHMEDABAD VS. M/S. PARAS PHAR MACEUTICALS PVT. LTD. . FOR A.YS. 2003-04 & 2006-07 - 2 - ITAT HAD ALREADY DELETED THE ADDITION. LIKEWISE, WH ILE DELETING THE PENALTY FOR A.Y. 2003-04, LEARNED CIT(A) HAD MADE A REFERENCE OF THE ORDER OF THE TRIBUNAL AND HELD THAT THE ISSUE BEING DEBATABLE; HENCE, THE CONCEALMENT PENALTY SHOULD NOT HAVE BEEN LEVIED. 3. NOW BEFORE US, TWO ORDERS OF THE TRIBUNAL HAVE B EEN PRODUCED, AS UNDER: 1. ITAT D BENCH, AHMEDABAD, BEARING ITA NO.1832/ AHD/2006 FOR A.Y. 2003-04 (PARAS PHARMACEUTICALS LTD., DATED 19.12.20 08. 2. ITAT D BENCH, AHMEDABAD, BEARING ITA NO.3565/A HD/2007 FOR A.Y. 2005-06 (PARAS PHARMACEUTICALS LTD, DATED 20.08.201 0. 4. IN THE ABOVE REFERRED JUDGMENT, THE TRIBUNAL HAS NOTED THAT IN VIEW OF THE PENDING CIVIL AND CRIMINAL LITIGATION AGAINS T THE PARTY WHO HAS REFUSED TO PAY THE PRINCIPAL AMOUNT THAN THE QUESTI ON OF ACCRUAL OF INTEREST DID NOT ARISE. MERELY, BECAUSE THE ASSESSE E HAD ADOPTED MERCANTILE BASIS, THE ADDITION DID NOT CALL FOR. TH E TRIBUNAL HAS NOTED THAT IN ASSESSEES OWN CASE IN THE PAST, THE IMPUGNED AD DITION ON IDENTICAL FACTS HAD ALREADY BEEN DELETED. RELEVANT PARAGRAPH 3 FROM A.Y. 2003-04 OF THE ITAT ORDER IS REPRODUCED BELOW: HAVING HEARD BOTH THE PARTIES, WE HAVE CAREFULLY G ONE THROUGH THE ORDER OF THE AUTHORITIES BELOW AND ALSO THE DECISION OF THE ITAT REFERRED TO ABOVE. IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2002-03 , VIDE CONSOLIDATED ORDER DT. 03.10.2008 IN ITA NOS. 2587 AND 273/AHD/2 006, ITAT, D BENCH, AHMEDABAD HAS CONSIDERED SIMILAR ISSUES AND RELYING ON THE DECISION OF THE ITAT IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2001-02 AND HAS ALLOWED THE APPEAL OF THE ASSESSEE. 5. RESPECTFULLY, FOLLOWING THE VIEW ALREADY TAKEN B Y CO-ORDINATE BENCHES, WE HEREBY AFFIRM THE FINDINGS OF LEARNED C IT(A) WHO HAS ALSO FOLLOWED THE JUDGMENTS OF THE TRIBUNAL. RESULTANTLY , GROUNDS OF THE REVENUE DO NOT SURVIVE; HENCE, DISMISSED. ITA NO.2962 & 2963/AHD/2010 ACIT (OSD), CIRCLE-5, AHMEDABAD VS. M/S. PARAS PHAR MACEUTICALS PVT. LTD. . FOR A.YS. 2003-04 & 2006-07 - 3 - 6. IN THE RESULT, THE APPEALS OF THE REVENUES ARE D ISMISSED. SD/- SD/- (T.R. MEENA) (MUKUL KR. SHRAWAT) ACCOUNTANT MEMBER JUD ICIAL MEMBER AHMEDABAD; DATED 26/02/2014 PRABHAT KR. KESARWANI, SR. P.S. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)-III, AHMEDABAD 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE. / BY ORDER, / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD