The DCIT, Circle-3(1)(1), Ahmedabad V. M/s. Nabros Pharma Limited, Ahmedabad

ITA 44/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6242 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 06-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Section: 143(3); 115JB; 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 44/AHD/2015 (ASSESSMENT YEAR: 2010-11) THE DCIT, CIRCLE-3(1)(1), AHMEDABAD V/S M/S. NABROS PHARMA LIMITED. 3 RD FLOOR, NABROS HOUSE, B/H BRITISH LIBRARY, LAW GARDEN, ELLISBRIDGE, AHMEDABAD-380006 (APPELLANT) (RESPONDENT) PAN: AAACN7886N APPELLANT BY : SHRI V.K. SINGH, SR. D.R. RESPONDENT BY : MS. URVASHI SHODHAN, A.R. ( )/ ORDER DATE OF HEARING : 03 -01-201 8 DATE OF PRONOUNCEMENT : 08-01-2018 PER N.K. BILLAIYA, ACCOUNTANT MEMBER 1. THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A)- XI, AHMEDABAD DATED 25.10.2013 PERTAINING TO A.Y. 2 010-11. ITA NO.44/AH D/2015 . A.Y.2010-11 2 2. THE ONLY GRIEVANCE OF THE REVENUE IS THAT THE LD. C IT(A) ERRED IN DELETING THE PENALTY OF RS. 34,67,420/- LEVIED U/S. 271(1)(C) OF THE ACT. 3. THE ROOTS FOR THE LEVY OF PENALTY LIE IN THE ASSESS MENT ORDER DATED 18.03.2013 FRAMED U/S. 143(3) OF THE ACT. WHILE FRAMING THE AS SESSMENT U/S. 143(3) OF THE ACT, THE INCOME WAS ASSESSED AT RS. 39,92,20,834/- AS AGAINST RETURNED INCOME OF RS. 38,86,31,604/- THEREBY MAKING ADDITION OF RS . 1,02,01,292/- ON ACCOUNT OF DISALLOWANCE OF DEDUCTION U/S. 10B OF THE ACT. 4. PENALTY PROCEEDINGS WERE SEPARATELY INITIATED AND T HE ASSESSEE WAS ASKED TO SHOW CAUSE WHY PENALTY SHOULD NOT BE LEVIED FOR THE EXCESSIVE CLAIM OF DEDUCTION U/S. 10B OF THE ACT. ASSESSEE STRONGLY CO NTENDED THAT SINCE THE TAX HAS BEEN CALCULATED U/S. 115JB OF THE ACT, NO PENAL TY U/S. 271(1)(C) OF THE ACT IS LEVIABLE. 5. THE CONTENTION OF THE ASSESSEE DID NOT FIND ANY FAV OUR WITH THE A.O. WHO LEVIED THE PENALTY OF RS. 34,67,420/- BEING 100% OF THE AMOUNT OF TAX SOUGHT TO BE EVADED. 6. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) A ND REITERATED ITS CONTENTION. 7. AFTER CONSIDERING THE FACTS AND THE SUBMISSIONS, TH E LD. CIT(A) WAS CONVINCED WITH THE CONTENTION OF THE ASSESSEE AND DRAWING SUP PORT FROM THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF NALWA S ONS INVESTMENT LTD. 327 ITR 543. THE LD. CIT(A) DIRECTED THE A.O. TO DELETE D THE PENALTY. ITA NO.44/AH D/2015 . A.Y.2010-11 3 8. BEFORE US, THE LD. D.R. SUPPORTED THE FINDINGS OF T HE A.O. PER CONTRA, THE LD. COUNSEL FOR THE ASSESSEE ONCE AGAIN RELIED UPON THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF NALWA SONS INVESTME NT LTD. (SUPRA). THE LD. COUNSEL FURTHER BROUGHT TO OUR NOTICE. CBDT CIRCUL AR NO. 25 OF 2015 DATED 31.12.2015 AND POINTED OUT THAT THE CBDT HAS ACCEPT ED THE SAID DECISION OF THE HONBLE DELHI HIGH COURT AND HAS DIRECTED THE R EVENUE NOT TO PREFER APPEALS ON THIS ISSUE. 9. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORD ERS OF THE AUTHORITIES BELOW. WE FIND THAT THE CLAIM OF DEDUCTION U/S. 10B OF THE ACT WAS DENIED UNDER THE NORMAL PROVISION OF THE ACT BUT THE ASSES SEE HAS PAID TAX AS PER MAT PROVISIONS U/S. 115JB OF THE ACT. THEREFORE, NO PENALTY IS LEVIABLE U/S. 271(1)(C) OF THE ACT. WE ALSO FIND THAT THE CBDT VI DE CIRCULAR NO. 25 OF 2015 DATED 31.12.2015 HAS DIRECTED THE REVENUE THAT NO A PPEALS ON THIS GROUND HAS TO BE FILED AND APPEALS ALREADY FILED ON THIS ISSUE SHOULD BE WITHDRAWN/NOT PRESSED UPON. 10. RESPECTFULLY FOLLOWING THE JUDGMENT OF THE HONBLE HIGH COURT OF DELHI IN THE CASE OF NALWA SONS INVESTMENT LTD. (SUPRA) AND CON SIDERING THE DIRECTIONS OF THE CBDT IN THE AFORESTATED CIRCULAR, WE DO NOT FIN D ANY ERROR OR INFIRMITY IN THE FINDINGS OF THE LD. CIT(A). 11. APPEAL FILED BY THE REVENUE IS ACCORDINGLY DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 08 - 01- 20 18 SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER