M/s. Bhat Biotech India Pvt. Ltd., Bengaluru V. Income-Tax Officer, Ward-7(2)(4), Bengaluru

ITA 307/BANG/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2825 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 02-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI J
• Assessee Lawyers: S RAMASUBRAMANIAN
• Section: 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, A M AND SHRI PAVAN KUMAR GADALE, JM PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 307 /BANG/201 8 ASSESSMENT YEAR : 20 1 2 1 3 M/S BHAT BIOTECH INDIA PVT. LTD. , NO. 47, 38 TH MAIN, 6 TH CROSS, BTM LAYOUT, II STAGE, B E NGAL URU - 5600 68 P A N : A AA CB7393N VS. IT O , WARD 7 ( 2 ) (4) , B ENGALURU APPELLANT RESPONDENT ASSESSEE BY : S HREE S. RAMASUBRAMANIAN , C. A. REVENUE BY : S MT. R. PREMI , J CIT DR DATE OF HEARING : 18 . 0 2 .20 20 DATE OF PRONOUNCEMENT : 13 . 0 3 .20 20 O R D E R P ER SHRI A.K. GARODIA, AM: THIS APPEAL I S FILED BY THE ASSESS E E AND IT IS DIRECTED AGAINST T HE ORDER OF CIT(A) 3 BENGALURU DATED 0 4 . 1 2.201 7 . 2. THE ASSESSEE HAS RAISED AS MANY AS 5 GROUNDS OF APPEAL BUT THE GRIEVANCE OF THE ASSESSEE IS ONLY ABOUT DISALLOWANCE OF RS. 116,91,078/ - U/S 35 (2AB) OF I T ACT. IN COURSE OF HEARING, LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE ISSUE IN DISPUTE WAS DECIDED AGAINST THE ASSESSEE BY THE AO AND CUIT (A) MAINLY ON THIS BASIS THAT THE ASSESSEE COULD NOT PRODUCE THE CERTIFICATE ISSUED BY DSIR IN FORM ITA NO S . 1106 / ( B)/20 1 6 PAGE 2 OF 3 3CL. HE PLACED REL IANCE ON THE TRIBUNAL ORDER RENDERED IN THE CASE OF MAHINDRA ELECTRIC MOBILITY LIMITED VS. ACIT IN ITA NO. 641/BANG/2017 DATED 14.09.2018, COPY ON PAGES 38 TO 54 OF THE PAPER BOOK AND IN PARTICULAR, OUR ATTENTION WAS DRAWN TO PARA 20 OF THIS TRIBUNAL ORDER ON PAGE 52 & 53 OF THE PAPER BOOK AND IT WAS POINTED OUT THAT IN THIS PARA, IT IS HELD BY THE TRIBUNAL THAT PRIOR TO 01.07.2016, FORM 3CL HAD NO LEGAL SANCTITY AND IT IS ONLY W.E.F. 01.07.2016 WITH THE AMENDMENT TO RULE 6 (7A) (B) OF THE RULES, THE QUANTI FICATION OF THE WEIGHTED DEDUCTION U/S 35 (2AB) OF THE ACT HAS SIGNIFICANCE. HE SUBMITTED THAT THE ISSUE SHOULD BE DECIDED IN PRINCIPLE IN FAVOUR OF THE ASSESSEE AND IT SHOULD BE HELD THAT EVEN IN ABSENCE OF FORM 3CL, DEDUCTION IS ALLOWABLE U/S 35 (2AB) AN D FOR QUANTIFICATION OF THE DEDUCTION, THE MATTER MAY BE REMANDED TO AO. AS AGAINST THIS, LEARNED DR OF THE REVENUE SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. REGARDING THE TRIBUNAL ORDER CITED BY THE LEARNED AR OF THE ASSESSEE, SHE SUBMITTED THAT FACT S OF THAT CASE ARE NOTED BY THE TRIBUNAL IN PARA 2 ON PAGE 39 OF THE PAPER BOOK. SHE POINTED OUT THAT AS PER THE FACTS NOTED BY THE TRIBUNAL IN THIS PARA, THE R & D CENTER WAS DULY APPROVED BY DSIR AND EXPENSES U/S 35 (2AB) WAS APPROVED BY DSIR IN THAT CAS E IN ALL SUBSEQUENT YEAR AND HAD BEEN ALLOWED BY AO IN SUBSEQUENT YEARS. SHE SUBMITTED THAT THERE IS NO CLARITY ON THESE ASPECTS IN THE PRESENT CASE AND THEREFORE, IN THE PRESENT CASE, THE MATTER MAY BE RESTORED TO AO FOR A FRESH DECISION ON ALL ASPECTS IN THE LIGHT OF THIS TRIBUNAL ORDER AND NOT FOR MERELY QUANTIFYING THE DEDUCTION. ITA NO S . 1106 / ( B)/20 1 6 PAGE 3 OF 3 3. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND WE FEEL IT PROPER TO RESTORE THE ENTIRE MATTER RESTORED TO AO FOR A FRESH DECISION ON ALL ASPECTS IN THE LIGHT OF THIS TRIBUNAL O RDER AND NOT FOR MERELY QUANTIFYING THE DEDUCTION. WE ORDER ACCORDINGLY BECAUSE ON SEVERAL ASPECTS OF FACTS OF THE PRESENT CASE, THERE IS NO CLARITY. 4 . IN THE RESULT, THE A PPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN TH E OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. (PAVAN KUMAR GADALE) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE MARCH , 20 20 . / N S/ COPY TO: 1. APPELLANT 4. CIT (A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.