Appeal details
Counselvise Citation
458519914 RSA 2013
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 10 month(s) 10 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
21-04-2015
Appeal Filed By
Department
Order Result
Allowed
Bench Allotted
G
Next Hearing Date
21-04-2015
Assessment Year
2008-2009
Appeal Filed On
11-06-2013
Judgement Text
, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES G, MUMBAI , . . , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO.4585/MUM/2013 ASSESSMENT YEAR: 2008-09 DCIT-7(3), ROOM NO.615, 6 TH FLOOR, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 / VS. M/S WYETH PHARMACEUTICALS INDIA LTD. LEVEL 6 & 7 PLATINA, PLOT NO.6-59, G-BLOCK, BANDRA KURLA COMPLEX, BANDRA(EAST), MUMBAI-400098 ( / REVENUE) ( !'# /ASSESSEE) P.A. NO. AAACW6225E / REVENUE BY SHRI VIJAY KUMAR BORA-DR !'# / ASSESSEE BY SHRI MILIN THAKORE $ % & #' / DATE OF HEARING 21/04/2015 & #' / DATE OF ORDER: 01/05/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 13/03/2013 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI. M/S WYETH PHARMACEUTICALS INDIA LTD 2 ONLY GROUND RAISED PERTAINS TO DELETING THE DISALLO WANCE OF RS.1,26,02,745/- MADE U/S 40(A)(IA) OF THE INCOME T AX ACT, 1961 (HEREINAFTER THE ACT), WITHOUT APPRECIATING TH E FACTUAL AND LEGAL MATRIX BROUGHT OUT BY THE ASSESSING OFFIC ER. 2. DURING HEARING OF THIS APPEAL, THE LD. DR, SHRI VIJAY KUMAR BORA, ADVANCED HIS ARGUMENTS WHICH ARE IDENTI CAL TO THE GROUND RAISED BY SUBMITTING THAT THE LD. COMMIS SIONER OF INCOME TAX (APPEALS) NOWHERE MENTIONED IN THE IMPUG NED ORDER THAT HE EXAMINED THE FACTS, THEREFORE, IT NEE DS REEXAMINATION. ON THE OTHER HAND, SHIR MILIN THAKO RE, LD. COUNSEL FOR THE ASSESSEE, DEFENDED THE CONCLUSION A RRIVED AT IN THE IMPUGNED ORDER BY CONTENDING THAT THE ASSESS EE FILED NECESSARY DETAILS WHICH WERE EXAMINED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS). 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS , IN BRIEF, ARE THAT THE ASSESSEE DEBITED EXPENDITURE OF RS.5,22,21,000/- CLAIMED TO BE INCURRED FOR CLINICA L RESEARCH AND DEVELOPMENT. THE ASSESSING OFFICER VIDE LETTER DATED 08/11/2010 ASKED THE ASSESSEE TO SUBMIT PARTY-WISE DETAILS OF CLAIMED EXPENDITURE ALONG WITH THE DETAILS OF TA X DEDUCTED AT SOURCE. THE ASSESSEE SUBMITTED THE DETAILS. AS PER THE LD. DR, AS MENTIONED IN ASSESSMENT ORDER ALSO, NO TAX W AS DEDUCTED AT SOURCE AMOUNTING TO RS.1,26,02,745/- AS THE SAME REPRESENTS REIMBURSEMENT OF ACTUAL COST. AS PE R THE REVENUE, THE ASSESSEE DID NOT PROVE THAT THE AMOUNT WAS ACTUAL EXPENDITURE AND THE REIMBURSEMENT DOES NOT H AVE ANY M/S WYETH PHARMACEUTICALS INDIA LTD 3 PROFIT ELEMENT. MORE SPECIFICALLY, WHEN THE ASSESS EE COULD NOT PRODUCE ANY DOCUMENTARY EVIDENCE SHOWING THAT T HE PARTIES TO WHOM SUCH REIMBURSEMENT WAS MADE ACTUALL Y DEDUCTED AT SOURCE ON THE CLAIMED EXPENDITURE, CONSEQUENTLY, THE AMOUNT OF RS.1,26,02,745/- WAS DISALLOWED U/S 40(A)(IA) OF THE ACT. ON APPEAL, TH E LD. COMMISSIONER OF INCOME TAX (APPEALS) DELETED THE DISALLOWANCE MADE BY THE ASSESSING OFFICER AGAINST WHICH THE REVENUE IS AGGRIEVED AND IS IN APPEAL BEFORE THIS T RIBUNAL. 2.2. IF THE OBSERVATION MADE IN THE ASSESSMENT ORDER, LEADING TO ADDITION/DISALLOWANCE, CONCLUSION DRAWN IN THE IMPUGNED ORDER, MATERIAL AVAILABLE ON RECORD, A SSERTIONS MADE BY THE LD. RESPECTIVE COUNSEL, IF KEPT IN JUXT APOSITION AND ANALYZED, WE NOTE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) WHILE DELETING THE DISALLOWANCE HAS N OT MENTIONED IN THE IMPUGNED ORDER THAT HE EXAMINED TH E DETAILS HIMSELF. IN VIEW OF THESE FACTS, PLACING R ELIANCE UPON THE DECISIONS MENTIONED AT PAGE-3 OF THE IMPUGNED O RDER CANNOT BE SAID TO BE JUSTIFIED AS THE FACTS ARE NOT CLEAR. THE OBSERVATION THAT THIS EXPENDITURE REPRESENTED REIMB URSEMENT OF EXPENSES IS ALSO NOT SUBSTANTIATED WITH EVIDENCE . IF THE ASSESSEE PROVES THAT TDS HAS ALREADY BEEN DEDUCTED THEN NO DISALLOWANCE CAN BE MADE. IN VIEW OF THESE FACTS, WE REMAND THIS FILE TO THE FILE OF THE LD. A SSESSING OFFICER TO EXAMINE THE CLAIM OF THE ASSESSEE AND DE CIDE IN ACCORDANCE WITH LAW. THE ASSESSEE BE GIVEN OPPORTU NITY OF BEING HEARD WITH FURTHER LIBERTY TO FURNISH EVIDENC E, IF ANY, TO M/S WYETH PHARMACEUTICALS INDIA LTD 4 SUBSTANTIATE ITS CLAIM, THUS, THE APPEAL OF THE REV ENUE IS ALLOWED FOR STATISTICAL PURPOSES. FINALLY, THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVE OF BOTH SIDES, AT TH E CONCLUSION OF HEARING ON 21/04/2015. SD/- SD/- ( R.C.SHARMA ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER $ % MUMBAI; ) DATED : 01/05/2015 F{X~{T? P.S/. . . %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. +,-. / THE APPELLANT 2. /0-. / THE RESPONDENT. 3. $ 1# ( +, ) / THE CIT, MUMBAI. P. $ 1# / CIT(A)- , MUMBAI 5. 34 /# ! , +,' +!5 , $ % / DR, ITAT, MUMBAI 6. 6 7% / GUARD FILE. / BY ORDER, 03,# /# //TRUE COPY// / (DY./ASSTT. REGISTRAR) , $ % / ITAT, MUMBAI
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