DCIT, New Delhi V. M/s. Fortis Clinical Research Ltd., New Delhi

ITA 3667/DEL/2010

• Counselvise Citation: 366720114 RSA 2010
• Duration Of Justice: 2 year(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 26-07-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 30-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J S AHLAWAT

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH B BB B : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI A.D.JAIN A.D.JAIN A.D.JAIN A.D.JAIN, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO. ITA NO. ITA NO. ITA NO.3667/DEL/2010 3667/DEL/2010 3667/DEL/2010 3667/DEL/2010 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2007 2007 2007 2007- -- -08 0808 08 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -11(1), 11(1), 11(1), 11(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. V VV VS. S.S. S. M/S FORTIS CLINICAL RESEARCH LTD., M/S FORTIS CLINICAL RESEARCH LTD., M/S FORTIS CLINICAL RESEARCH LTD., M/S FORTIS CLINICAL RESEARCH LTD., 55, HANUMAN ROAD, 55, HANUMAN ROAD, 55, HANUMAN ROAD, 55, HANUMAN ROAD, CONNAUGHT PLACE, CONNAUGHT PLACE, CONNAUGHT PLACE, CONNAUGHT PLACE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. PAN : AAACO7343M. PAN : AAACO7343M. PAN : AAACO7343M. PAN : AAACO7343M. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI J.S.AHLAWAT, SR.DR. RESPONDENT BY : SHRI M.S.SYALI, SR.ADVOCATE WITH SHRI MANISH UPNEJA AND SHRI TARANDEEP SINGH, CAS. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VP VPVP VP : : : : THE GROUNDS RAISED IN THIS APPEAL BY THE REVENUE R EAD AS UNDER:- 1. THE ORDER OF LD.CIT(A) IS WRONG, PERVERSE, ILLE GAL AND AGAINST THE PROVISION OF LAW, LIABLE TO BE SET ASID E. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD.CIT(A) HAS ERRED IN AS THE ASSESSEE HAS FAILED TO COMPLY WITH CONDITIONS SPECIFIED U/S 80IB(8A)(IV) O F THE I.T.ACT 1961 READ ALONG WITH RULE 18DA(2)(A) OF THE I.T.RULES. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD.CIT(A) HAS ERRED IN NOT CONSIDERING THA T THE ASSESSEE HAS DEFAULTED IN ITS OBLIGATION TO TAKE PR IOR ITA-3667/DEL/2010 2 PERMISSION OF THE PRESCRIBED AUTHORITY TO SELL ITS SERVICES AS REQUIRED UNDER RULE 18DA(2)(A). 2. AT THE TIME OF HEARING BEFORE US, IT IS STATED B Y THE LEARNED DR THAT THE ASSESSEE COMPANY IS ENGAGED IN SCIENTIFIC RESEARCH AND DEVELOPMENT AND PROVIDE THE SERVICES OF BIO-EQUIVAL ENCE OF INTERNATIONAL STANDARDS TO PHARMACEUTICAL COMPANIES . DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE CLAIMED DEDUCTION UNDER SECTION 80IB(8A) OF THE INCOME-TAX ACT, 1961. THAT THE SAI D DEDUCTION IS SUBJECT TO RULE 18DA OF THE INCOME-TAX RULES, 1962. THAT AS PER RULE 18DA(2)(A), THE ASSESSEE COMPANY CANNOT SELL ANY PR OTOTYPE OR OUTPUT WITHOUT THE PRIOR PERMISSION OF THE PRESCRIBED AUTH ORITY. THAT THE ASSESSEE COMPANY WAS SELLING THE SERVICES TO THE PH ARMACEUTICAL COMPANIES AND RECEIVING THE SERVICE CHARGES. THAT SALE OF THOSE SERVICES IS THE SALE OF OUTPUT OF ITS RESEARCH AND SINCE THE PRIOR PERMISSION OF THE PRESCRIBED AUTHORITY WAS NOT TAKE N, THERE WAS VIOLATION OF RULE 18DA(2)(A). THEREFORE, THE ASSES SING OFFICER HAD RIGHTLY REJECTED THE DEDUCTION UNDER SECTION 80IB(8 A) CLAIMED BY THE ASSESSEE. THE LEARNED CIT(A) ALLOWED THE RELIEF TO THE ASSESSEE WITHOUT PROPERLY APPRECIATING THE FACTS OF THE CASE AND THE LEGAL POSITION. THEREFORE, THE ORDER OF LEARNED CIT(A) S HOULD BE REVERSED AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. 3. THE LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTH ER HAND, STATED THAT RULE 18DA(2)(A) PROHIBITS THE SALE OF ANY PROT OTYPE OR OUTPUT WITHOUT THE PRIOR PERMISSION OF THE PRESCRIBED AUTH ORITY. THAT THE ASSESSEE HAS NOT SOLD ANY PROTOTYPE OR OUTPUT. IT WAS SIMPLY RENDERING SERVICES TO SOME OF THE PHARMACEUTICAL COMPANIES AN D RECEIVING SERVICE CHARGES. THAT RENDERING OF SERVICES DOES N OT AMOUNT TO SALE OF PROTOTYPE OR OUTPUT. THAT DEPARTMENT OF SCIENTIFIC AND INDUSTRIAL RESEARCH TECHNOLOGY, MINISTRY OF SCIENCE AND TECHNO LOGY, IS THE PRESCRIBED AUTHORITY UNDER RULE 18DA. THAT THE ASS ESSEE COMPANY IS APPROVED BY SUCH PRESCRIBED AUTHORITY VIDE ORDER DA TED 30 TH MARCH, ITA-3667/DEL/2010 3 2007 FOR AY 2007-08, 2008-09 & 2009-10. THAT SUCH APPROVAL IS FURTHER EXTENDED VIDE ORDER DATED 30 TH JUNE, 2009 FOR AY 2010-11, 2011-12 & 2012-13. THAT WHETHER THERE IS A VIOLATI ON OF ANY CLAUSE OF RULE 18DA IS TO BE LOOKED INTO BY THE PRESCRIBED AU THORITY BEFORE EXTENDING THE APPROVAL. HAD THERE BEEN ANY VIOLATI ON, THE APPROVAL TO THE ASSESSEE WOULD NOT HAVE BEEN EXTENDED BY THE PR ESCRIBED AUTHORITY. THAT IN AY 2009-10, THE ASSESSING OFFIC ER HIMSELF, VIDE ORDER DATED 7 TH DECEMBER, 2011 PASSED UNDER SECTION 143(3), HAS GRANTED APPROVAL UNDER SECTION 80IB. THAT SUCH APP ROVAL IS DULY GRANTED AFTER CONSIDERING RULE 18DA OF THE IT RULES . THUS, THE DEPARTMENT ITSELF IN THE SUBSEQUENT YEAR ON IDENTIC AL FACTS HAS TAKEN A VIEW THAT THERE IS NO VIOLATION OF RULE 18DA(2). H E, THEREFORE, SUBMITTED THAT THE ORDER OF LEARNED CIT(A) SHOULD B E SUSTAINED. 4. WE HAVE CAREFULLY CONSIDERED THE ARGUMENTS OF BO TH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. SECTION 80IB(8A) READS AS UNDER:- 80 8080 80- -- -IB. IB.IB. IB. DEDUCTION IN RESPECT OF PROFITS AND GAINS FROM DEDUCTION IN RESPECT OF PROFITS AND GAINS FROM DEDUCTION IN RESPECT OF PROFITS AND GAINS FROM DEDUCTION IN RESPECT OF PROFITS AND GAINS FROM CERTAIN INDUSTRIAL UNDERTAKINGS OTHER THAN INFRASTR UCTURE CERTAIN INDUSTRIAL UNDERTAKINGS OTHER THAN INFRASTR UCTURE CERTAIN INDUSTRIAL UNDERTAKINGS OTHER THAN INFRASTR UCTURE CERTAIN INDUSTRIAL UNDERTAKINGS OTHER THAN INFRASTR UCTURE DEVELOPMENT UNDERTAKINGS. DEVELOPMENT UNDERTAKINGS. DEVELOPMENT UNDERTAKINGS. DEVELOPMENT UNDERTAKINGS. [(8A 8A8A 8A) THE AMOUNT OF DEDUCTION IN THE CASE OF ANY COMP ANY CARRYING ON SCIENTIFIC RESEARCH AND DEVELOPMENT SHA LL BE HUNDRED PER CENT OF THE PROFITS AND GAINS OF SUCH B USINESS FOR A PERIOD OF TEN CONSECUTIVE ASSESSMENT YEARS, BEGINNING FROM THE INITIAL ASSESSMENT YEAR, IF SUCH COMPANY (I) IS REGISTERED IN INDIA; (II) HAS ITS MAIN OBJECT THE SCIENTIFIC AND INDUSTR IAL RESEARCH AND DEVELOPMENT; ITA-3667/DEL/2010 4 (III) IS FOR THE TIME BEING APPROVED BY THE PRESCRI BED AUTHORITY AT ANY TIME AFTER THE 31 ST DAY OF MARCH, 2000 BUT BEFORE THE 1 ST DAY OF APRIL, 2007; (IV) FULFILS SUCH OTHER CONDITIONS AS MAY BE PRESCR IBED.]. 5. FROM THE ABOVE, IT IS EVIDENT THAT DEDUCTION UND ER SECTION 80IB(8A) IS AVAILABLE TO A COMPANY CARRYING ON SCIE NTIFIC RESEARCH AND DEVELOPMENT WORK PROVIDED THE COMPANY IS REGISTERED IN INDIA. ITS MAIN OBJECT IS SCIENTIFIC AND INDUSTRIAL RESEARCH, WHICH IS APPROVED BY THE PRESCRIBED AUTHORITY AND IT FULFILS THE CONDITI ONS AS MAY BE PRESCRIBED. IN THE CASE OF THE ASSESSEE, IT IS NOT IN DISPUTE THAT IT IS A COMPANY WHICH IS REGISTERED IN INDIA. IT HAS MAIN OBJECT OF SCIENTIFIC AND INDUSTRIAL RESEARCH AND DEVELOPMENT AND IT IS A PPROVED BY THE PRESCRIBED AUTHORITY. THE ONLY DISPUTE BY THE REVE NUE IS THAT IT HAS NOT FULFILLED THE CONDITIONS AS PRESCRIBED BY RULE 18DA OF THE I.T. RULES. THE SAID RULE 18DA READS AS UNDER:- PRESCRIBED CONDITIONS FOR DEDUCTION UNDER SUB PRESCRIBED CONDITIONS FOR DEDUCTION UNDER SUB PRESCRIBED CONDITIONS FOR DEDUCTION UNDER SUB PRESCRIBED CONDITIONS FOR DEDUCTION UNDER SUB- -- -SECTION (8A) SECTION (8A) SECTION (8A) SECTION (8A) OF SECTION 80 OF SECTION 80 OF SECTION 80 OF SECTION 80- -- -IB. IB.IB. IB. 18DA. 18DA. 18DA. 18DA. (1) ANY COMPANY CARRYING ON SCIENTIFIC RESEAR CH AND DEVELOPMENT SHALL BE ELIGIBLE FOR DEDUCTION SPECIFI ED IN SUB-SECTION (8A) OF SECTION 80-IB, IF SUCH COMPANY ( A ) IS REGISTERED IN INDIA; ( B ) HAS ITS MAIN OBJECT THE SCIENTIFIC AND INDUSTRIA L RESEARCH AND DEVELOPMENT; ( C ) HAS ADEQUATE INFRASTRUCTURE SUCH AS LABORATORY FACILITIES, QUALIFIED MANPOWER, SCALE-UP FACILITIES AND PROTOTYPE DEVELOPMENT FACILITIES FOR UNDERTAKING SC IENTIFIC RESEARCH AND DEVELOPMENT OF ITS OWN; ( D ) HAS A WELL FORMULATED RESEARCH AND DEVELOPMENT PROGRAMME COMPRISING OF TIME BOUND RESEARCH AND DEVELOPMENT PROJECTS WITH PROPER MECHANISM FOR SELE CTION AND REVIEW OF THE PROJECTS OR PROGRAMME; ( E ) IS ENGAGED EXCLUSIVELY IN SCIENTIFIC RESEARCH AN D DEVELOPMENT ACTIVITIES LEADING TO TECHNOLOGY DEVELO PMENT, ITA-3667/DEL/2010 5 IMPROVEMENT OF TECHNOLOGY AND TRANSFER OF TECHNOLOG Y DEVELOPED BY THEMSELVES; ( F ) SUBMITS THE ANNUAL RETURN ALONGWITH STATEMENT OF ACCOUNTS AND ANNUAL REPORT WITHIN EIGHT MONTHS AFTE R THE CLOSE OF EACH ACCOUNTING YEAR TO THE PRESCRIBED AUT HORITY. (2) EVERY COMPANY WHICH IS APPROVED UNDER SUB-RULE (2) OF RULE 18D SHALL ( A ) SELL ANY PROTOTYPE OR OUTPUT, IF ANY, FROM ITS LABORATORIES OR PILOT PLANTS WITH THE PRIOR PERMISS ION OF THE PRESCRIBED AUTHORITY; ( B ) INTIMATE THE CHANGE, IF ANY, IN ITS MEMORANDUM O F ASSOCIATION AND ARTICLES OF ASSOCIATION RELATING TO ITS MAIN OBJECTS AND FORWARD THE ALTERED COPY OF ITS MEMORAN DUM OF ASSOCIATION AND ARTICLES OF ASSOCIATION TO THE PRES CRIBED AUTHORITY; ( C ) APPLY FOR EXTENSION OF THE APPROVAL AT LEAST THR EE MONTHS BEFORE EXPIRY OF THE APPROVAL ALREADY GRANTE D BY THE PRESCRIBED AUTHORITY; ( D ) HAVE A SYSTEM OF MONITORING THE COST OF RESEARCH AND DEVELOPMENT PROJECTS. (3) IF, AT ANY STAGE, IT IS FOUND THAT ( A ) THE APPROVAL GRANTED TO THE COMPANY REFERRED TO IN SUB-RULE (2) OF RULE 18D IS TO AVOID PAYMENT OF TAX ES BY ITS GROUP COMPANIES OR COMPANIES RELATED TO ITS DIRECTO RS OR MAJORITY OF ITS SHAREHOLDERS; ( B ) ANY PROVISIONS OF THE ACT OR THE RULES HAVE BEEN VIOLATED, THE PRESCRIBED AUTHORITY SPECIFIED MAY WITHDRAW THE APPROVAL SO GRANTED. (4) EVERY COMPANY REFERRED TO IN SUB-RULE (1) SHALL MAKE AN APPLICATION TO THE PRESCRIBED AUTHORITY FOR THE PUR POSES OF OBTAINING APPROVAL. (5) EVERY APPLICATION REFERRED TO IN SUB-RULE (4) S HALL BE ACCOMPANIED BY ITA-3667/DEL/2010 6 ( A ) MEMORANDUM OF ASSOCIATION AND ARTICLES OF ASSOCI ATION INCORPORATING ALL AMENDMENTS DULY CERTIFIED BY THE COMPANY SECRETARY OR MANAGING DIRECTOR OF THE COMPA NY; ( B ) ANNUAL REPORT OF THE COMPANY FOR THE LAST THREE YEARS, IF AVAILABLE; ( C ) PHOTOCOPIES OF THE MEMORANDUM OF UNDERSTANDING RELATING TO ALL ON-GOING AND FUTURE SPONSORED RESEA RCH PROJECTS OR PROGRAMMES. (6) THE PRESCRIBED AUTHORITY MAY CALL FOR ANY INFOR MATION OR DOCUMENT WHICH MAY BE NECESSARY FOR CONSIDERATION O F THE GRANT OF APPROVAL UNDER SUB-RULE (2) OF RULE 18D. (7) THE PRESCRIBED AUTHORITY SHALL GRANT APPROVAL W ITHIN FOUR MONTHS FROM THE DATE OF RECEIPT OF THE APPLICA TION : PROVIDED PROVIDED PROVIDED PROVIDED THAT WHERE THE APPROVAL IS NOT GRANTED, TH E DECISION OF THE SAID AUTHORITY SHALL BE COMMUNICATE D TO THE APPLICANT WITHIN THE SAID PERIOD OF FOUR MONTHS : PROVIDED FURTHER PROVIDED FURTHER PROVIDED FURTHER PROVIDED FURTHER THAT NO APPROVAL SHALL BE REFUSED UNLESS THE APPLICANT HAS BEEN GIVEN AN OPPORTUNITY OF BEIN G HEARD.]. 6. THE CONTENTION OF THE REVENUE IS THAT THE ASSESS EE HAS VIOLATED THE PROHIBITION PROVIDED BY RULE 18DA(2)(A), I.E., IT HAS SOLD THE OUTPUT BY WAY OF SELLING SERVICES TO THE PHARMACEUTICAL CO MPANIES. HOWEVER, WE FIND THAT SUB-RULE (3) OF RULE 18DA ITSELF PROVI DES THE CONSEQUENCE OF VIOLATION OF SUB-RULE (2). AS PER SUB-RULE (3), IF AT ANY STAGE IT IS FOUND THAT ANY PROVISIONS OF THE ACT OR THE RULES H AVE BEEN VIOLATED, THE PRESCRIBED AUTHORITY SPECIFIED MAY WITHDRAW THE APPROVAL SO GRANTED. THEREFORE, IF THERE IS A VIOLATION OF SUB -RULE (2), THE PRESCRIBED AUTHORITY HAS TO TAKE ACTION AGAINST THE ASSESSEE B Y WITHDRAWING THE APPROVAL. IN THE CASE OF THE ASSESSEE, THE PRESCRI BED AUTHORITY HAS NOT WITHDRAWN THE APPROVAL OF THE ASSESSEE FOR THE ASSE SSMENT YEAR UNDER CONSIDERATION I.E. 2007-08 BUT HAS FURTHER GRANTED THE EXTENSION OF THE APPROVAL VIDE ORDER DATED 30 TH JUNE, 2009 FOR A FURTHER PERIOD OF THREE YEARS. MOREOVER, THE ASSESSING OFFICER HIMSELF IN THE SUBSEQUENT YEAR ITA-3667/DEL/2010 7 I.E. 2009-10 IN THE ORDER PASSED UNDER SECTION 143( 3) HAS DISCUSSED AT LENGTH SECTION 80IB(8A) & RULE 18DA(1) AND HAS FINA LLY CONCLUDED THAT THE ASSESSEE IS ENTITLED TO DEDUCTION UNDER SECTION 80IB(8A). THE RELEVANT FINDING OF THE ASSESSING OFFICER READS AS UNDER:- 8. REPLY/SUBMISSION OF THE ASSESSEE HAS BEEN CONSIDERED AND ON GOING THROUGH THE ABOVE REPLY OF THE ASSESSEE, IT IS FOUND THAT THE ASSESSEE COMPANY IS REGISTERED IN INDIA AND HAS ITS MAIN OBJECT OF BEIN G A SCIENTIFIC AND INDUSTRIAL RESEARCH AND DEVELOPMENT. IT ALSO HAS ADEQUATE INFRASTRUCTURE AND RESEARCH PROGRAMMES FOR THE PURPOSE OF CARRYING OUT SCIENTIFIC RESEARCH AND DEVELOPMENT AND IT HAS ALSO SUBMITTED THE ANNUAL RE TURN ALONG WITH STATEMENT OF ACCOUNTS AND ANNUAL REPORT WITHIN EIGHT MONTHS FROM THE CLOSE OF THE ACCOUNTING YEAR UNDER REFERENCE IN ACCORDANCE WITH CLAUSE (F) OF RULE 18D A(1). 9. FURTHER, AS REGARDS RULE 18DA(2), THE ASSESSEE H AS SUBMITTED IN HIS REPLY DATED 25.11.2011 THAT IT IS CARRYING OUT SCIENTIFIC RESEARCH ACTIVITIES FOR AND ON BEHAL F OF M/S RANBAXY LABORATORIES LTD. AND OTHER SPONSOR COMPANI ES TO WHOM IT WAS PROVIDING THE RESULTS OF ITS RESEARCH A CTIVITIES AS CONTAINED IN THE AGREEMENTS ENTERED INTO WITH TH EM. IT ALSO STATED THAT WHILE IT DID NOT SELL ANY PROTOTYP E OR OUTPUT, IT HAS DULY FILED ALL THE AGREEMENTS CONTAI NING THE RESEARCH ACTIVITIES UNDERTAKEN BY IT FOR ITS SPONSO RS (M/S RANBAXY AND OTHER) WITH THE DSIR. THE SAID AGREEME NTS HAVE BEEN OBTAINED FROM THE COMPANY AND HAVE BEEN PLACED ON RECORDS. THE SAID AGREEMENTS CONTAIN THE ELABORATE PROCESS OF RESEARCH AND DEVELOPMENT ACTIV ITIES UNDERTAKEN BY IT, RESEARCH ACTIVITIES IN PROGRESS A S WELL AS RESEARCH ACTIVITIES PROPOSED AND PLANNED DURING THE YEAR. ITA-3667/DEL/2010 8 10. THE ASSESSEE COMPANY HAS SOUGHT APPROVAL FROM T HE DSIR BY FURNISHING ALL SUCH AGREEMENTS AND RELATED DOCUMENTS WITH THE DSIR DURING THE YEAR UNDER ASSESSMENT, BASED ON WHICH, THE DSIR HAS GRANTED APPROVAL OF EXTENSION TO THE ASSESSEE COMPANY FOR A FURTHER PERIOD OF 3 YEARS I.E. FOR A.Y. 2010-11, 20 11-12 AND 2012-13 VIDE ITS LETTER DATED 30.06.2009, A COPY OF WHICH HAS BEEN SUBMITTED BY THE ASSESSEE AND PLACED ON RE CORD. 11. ON GOING THROUGH THE ABOVE DOCUMENTS FILED BY T HE ASSESSEE WITH THE DSIR DURING THE YEAR UNDER ASSESS MENT FOR ITS APPROVAL AND SUBSEQUENT GRANT OF APPROVAL B Y THE DSIR FOR A FURTHER PERIOD OF 3 YEARS. 12. KEEPING IN VIEW THE DETAILS FILED AND ABOVE FAC TS OF THE ASSESSEE SPECIFICALLY FOR THE YEAR UNDER ASSESS MENT, AFTER DISCUSSION WITH THE ASSESSEES REPRESENTATIVE , THE DEDUCTION U/S 80-IB(8A) IS ALLOWED AS CLAIMED. 7. IN VIEW OF THE ABOVE, WE FIND NO INFIRMITY IN TH E ORDER OF LEARNED CIT(A) WHO HAS DIRECTED THE ASSESSING OFFICER TO AL LOW THE DEDUCTION UNDER SECTION 80IB(8A). THEREFORE, HIS ORDER IS UP HELD AND REVENUES APPEAL IS DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 9 TH AUGUST, 2012. SD/- SD/- ( (( (A.D.JAIN A.D.JAIN A.D.JAIN A.D.JAIN) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 09.08.2012 VK. ITA-3667/DEL/2010 9 COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -11(1), 11(1), 11(1), 11(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. 2. RESPONDENT : M/S FORTIS CLINICAL RESEARCH LTD., M/S FORTIS CLINICAL RESEARCH LTD., M/S FORTIS CLINICAL RESEARCH LTD., M/S FORTIS CLINICAL RESEARCH LTD., 55, HANUMAN ROAD, 55, HANUMAN ROAD, 55, HANUMAN ROAD, 55, HANUMAN ROAD, CONNAUGHT PLACE, CONNAUGHT PLACE, CONNAUGHT PLACE, CONNAUGHT PLACE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR