Mylan Laboratories Limited, Hyderabad V. Dy. Commissioner of Income Tax , Circle-16(2), Hyderabad

ITA 378/Hyd/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8337 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 26-09-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 23-02-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI; AMISHA S GUPT
• Assessee Lawyers: K A SAI PRASAD
• Section: 143(3); 10B; 154

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 378 /HYD/20 18 ASSESSMENT YEAR: 20 09 - 10 MYLAN LABORATORIES LIMITED, (FORMERLY MATRIX LABORATORIES LIMITED), PLOT NO.564/A/22, ROAD NO.92, JUBILEE HILLS, HYDERABAD 500 033. PAN: AADCM 3491 M VS. DCIT, CIRCLE - 16(2), AAYAKAR BHAVAN, HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI K.A. SAI PRASAD REVENUE BY: SMT. AMISHA S GUPT & SRI Y.V.S.T. SAI, CIT - DR DATE OF HEARING: 26/09/2019 DATE OF PRONOUNCEMENT: 04 /10/2019 ORDER PER A. MOHAN ALANKAMONY, AM.: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. DCIT, CIRCLE - 16(2), HYDERABAD, DATED 22/12/2017 PASSED U/S. 154 R.W.S 250(6) OF THE ACT FOR THE ASSESSMENT YEAR 2009 - 10. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN ITS APPEAL HOWEVER, THE CRUX OF THE ISSUE THAT IS ARGUED BEFORE US IS THAT 2 THE LD AO HAS ERRED IN DISALLOWING MAT CREDIT ENTITLEMENT FOR THE RELEVANT ASSESSMENT YEAR 2009 - 10. 3. THE BRIEF FACTS OF THE ISSUE ARE T HAT WHILE PASSING ORDER U/S. 143(3) R.W.S 92CA R.W.S 144C(5) OF THE ACT, DATED 30/01/2014 MAT CREDIT OF RS. 7,59,69,174/ - PERTAINING TO AY 2007 - 08 AND 2008 - 09 WAS ERRONEOUSLY GRANTED. SUBSEQUENTLY, WHILE GIVING EFFECT TO THE ORDER OF THE ITAT DATED 31/3/2 017 ALSO FOR THE RELEVANT ASSESSMENT YEAR THE SAME ERROR OF GRANTING MAT CREDIT OF RS. 7,59,69,174/ - REMAINED UNCURED. THEREAFTER , WHEN THE ERROR WAS UNEARTHED BY THE REVENUE, NOTICE U/S. 154 WAS ISSUED TO THE ASSESSEE ON 20/07/2017 IN ORDER TO RECTIFY TH E MISTAKE. IN RESPONSE, THE ASSESSEE HAD SUBMITTED VIDE REPLY DATED 29/08/2017 THAT THE ADDITION MADE FOR THE AY 2007 - 08 AND 2008 - 09 WAS ON ACCOUNT OF DISALLOWANCE U/S.10B OF THE ACT AGAINST WHICH APPEALS ARE PENDING BEFORE THE TRIBUNAL. THE LD. DCIT THE REAFTER HELD THAT MAT CREDIT CANNOT BE GRANTED FOR THE RELEVANT ASSESSMENT YEAR 2009 - 10 BASED ON THE ARGUMENT THAT A FAVOURABLE JUDGMENT IS EXPECTED FOR GRANTING OF DEDUCTION U/S. 10B OF THE ACT AND ACCORDINGLY COMPUTED THE TAX PAYABLE. 4. ON PERUSING THE ABOVE FACTS, W E DO NOT FIND ANY MISTAKE THAT IS APPARENT IN THE ORDER OF THE LD. DCIT WHEREIN HE HAS HELD THAT MAT CREDIT CANNOT BE GRANTED BASED ON THE MERE ARGUMENT 3 THAT A FAVOURABLE JUDGMENT IS EXPECTED FOR GRANTING DEDUCTION U/S. 10B OF TH E ACT BY THE APPELLATE AUTHORIT Y . HOWEVER, IT IS NEEDLESS TO MENTION THAT IT IS MANDATORY FOR THE REVENUE AUTHORITY TO PASS APPROPRIATE CONSEQUENTIAL ORDER / ORDERS FOR ALL THE RELEVANT ASSESSMENT YEARS , IF ANY ORDER IS PASSED IN FAVOUR OF THE ASSESSEE FOR GRANTING DEDUCTION U/S. 10B OF THE ACT BY THE APPELLATE AUTHORITY / AUTHORITIES . 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED . PRONOUNCED IN THE OPEN COURT ON 04 TH OCTOBER, 2019. SD/ - SD/ - (P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 04 TH OCTOBER , 2019 OKK COPY TO: - 1) MYLAN LABORATORIES LIMITED, PLOT NO.564/A/22, ROAD NO.92, JUBILEE HILLS, HYDERABAD 034. 2) DCIT, CIRCLE - 16(2), IT TOWERS, HYDERABAD. 3) DISPUTE RESOLUTION PANEL , HYDERABAD 4) THE CIT - IV , HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE