ITO 6(1)-1, MUMBAI V. ADVANCED REMEDIES P. LTD, MUMBAI

ITA 651/MUM/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3407 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 19-06-2013
• Assessment Year: 2004-2005
• Appeal Filed On: 24-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V MOHAN
• Section: 143(3)

Judgement Text

, INCOME TAX APPELLATE TRIBUNAL,MUMBAI - I BENCH. . .. . . .. . , ,, , / !'# !'# !'# !'# , ' ' ' ' BEFORE S/SH. B.R. MITTAL, JUDICIAL MEMBER & RAJENDRA, ACCOUNTANT MEMBER ./ ITA NO.651/MUM/2011, $ $ $ $ % % % % / ASSESSMENT YEAR-2004-05 ITO -5(1)-1 ROOM NO. 503, AAYAKAR BHAVAN, MUMBAI-400020 VS. M/S ADVANCED REMEDIES PVT. LTD. 10, SHIRIN MANZIL, 18/24, ST. MARY ROAD, MAZGAON, MUMBAI- 400010 PAN: AAACO3779R ( &' / APPELLANT ) ( ()&' / RESPONDENT ) &' &' &' &' * * * * ' '' ' / APPELLANT BY : NEERAJA PRADHAN ()&' + * ' / RESPONDENT BY : SHRI V. MOHAN $ $ $ $ + ++ + ,- ,- ,- ,- / DATE OF HEARING : 19-06-2013 ./% + ,- / DATE OF PRONOUNCEMENT : 19-06-2013 $ $ $ $ , 1961 + ++ + 254(1) ' '' ' ,0, ,0, ,0, ,0, '1 '1 '1 '1 ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) PER RAJENDRA, A.M. CHALLENGING THE ORDER DT.15-11-2010 OF THE CIT(A)-1 4,MUMBAI,ASSESSING OFFICER(AO) HAS FILED THE FOLLOWING GROUNDS OF APPEAL: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN HOLDING THAT DEDUCTION U/S 80-IB IS ALLOWABLE IN TH E CASE OF THE ASSESSEE DOING JOB WORK FOR OTHER PARTY SHOWING NO MATERIAL COST. THE APPELLANT PRAYS THAT THE ORDER OF CIT(A) ON TH E ABOVE GROUNDS BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 2. ASSESSEE COMPANY, ENGAGED IN THE BUSINESS OF MANUFA CTURING OF PHARMACEUTICAL PRODUCTS, FILED ITS RETURN OF INCOME ON 01.04.2004 DECLARING TOTAL INCOME AT RS. NIL. ASSESSMENT U/S.143(3) OF THE ACT WAS COMPLETED ON 27.11.2006,ASSESSING THE I NCOME U/S. 115-JB AT RS. 2.3 CRORES. THE ASSESSMENT WAS SET ASIDE BY THE CIT,U/S. 263 OF THE ACT VIDE HIS ORDER DATED 17.09.2008.THE CIT, IN THE REVISIONARY ORDER,DIRECTED THE AO TO VERIFY AS TO WHETHER THE PROCESSING INCOME RECEIVED FROM M/S. CIPLA AND THE ACTIVITIES TAKEN TOGETHER A MOUNTED TO MANUFACTURE OR PRODUCTION. ACCORDINGLY, A FRESH ASSESSMENT ORDER WAS PASSED BY THE AO ON 04.12.2009 U/S 143(3) R.W.S.263 OF THE ACT DETERMINING THE INCOME AT RS. 1.07 CRORE S UNDER NORMAL PROVISIONS OF THE ACT. AO ALSO DENIED THE BENEFIT OF SECTION 80-IB TO THE ASS ESSEE IN THE FRESH ORDER PASSED IN PURSUANCE OF THE ORDER OF THE CIT. 2 ITA NO.651/MUM/2011,(AY-2004-05) M/S ADVANCED REMEDIES PVT. LTD . 3. ASSESSEE PREFERRED AN APPEAL BEFORE THE FIRST APPEL LATE AUTHORITY (FAA).AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND THE ASSESSMENT ORDE R, HE HELD THAT SIMILAR ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE BY THE ITAT MUMBAI IN APPELL ANTS OWN CASE FOR AY 2005-06.FOLLOWING THE SAID ORDER OF THE TRIBUNAL,FAA DIRECTED THE AO TO ALLOW THE CLAIM MADE BY THE ASSESSEE U/S 80-IB OF THE ACT. 4. BEFORE US DR SUPPORTED THE ORDER OF THE AO.AR SUBMI TTED THAT A BENCH OF THE ITAT MUMBAI VIDE ORDER DATED 31.10.2009 (ITA/5714/MUM/20 08- AY 2005-06) HAD DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. 5.WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE MATERIAL ON RECORD.WE FIND THAT AO HAD RAISED THE FOLLOWING GROUND WHILE FILING THE APPEAL FOR AY 2005-06. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, LD. CIT(A) ERRED IN HOLDING THAT ASSESSEE IS ENTITLED TO DEDUCTION U/S. 80-IB IN RESPECT OF S ALE PROCEEDS OF SCRAP AMOUNTING TO RS. 2,50,308/-. 6 . WE FIND THAT DISMISSING THE APPEAL FILED BY THE AO, TRIBUNAL HAD RELIED UPON THE ORDER OF THE E BENCH MUMBAI DELIVERED IN THE CASE OF MEDS SPRA Y LABS PVT. LTD. (ITA NO. 2776/ MUM/ 2005 DATED 19.03.2008). AS THE FACTS AND CIRCUMSTANCES OF THE CASE ARE SIMI LAR TO THAT OF AY 2005-06, WE SEE NO REASON FOR NOT FOLLOWING THE ORDER OF COORDINATE-BENCH. TH EREFORE, RESPECTFULLY FOLLOWING THE DECISION OF THE COORDINATE BENCHES WE CONFIRM THE ORDER OF THE FAA AND DISMISS THE GROUND RAISED BY THE AO. IN THE RESULT, APPEAL FILED BY THE AO S TAND DISMISSED. 2 ,3$2, VF/KDKJH + 2! + !, 45 . ORDER PRONOUNCED IN THE OP EN COURT ON 19 TH JUNE,2013 '1 + ./% ' 6 7$ 19 !8$ , 2013 / + 0 9 SD/- SD/- ( .. / B.R. MITTAL ) ( !'# !'# !'# !'# / RAJENDRA ) / JUDICIAL MEMBER ' ' ' ' /ACCOUNTANT MEMBER / MUMBAI, 7$ /DATE: 19 TH JUNE, . 2013 SK '1 '1 '1 '1 + ++ + ( (( (,: ,: ,: ,: ;':%, ;':%, ;':%, ;':%, / COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE / &' 3 ITA NO.651/MUM/2011,(AY-2004-05) M/S ADVANCED REMEDIES PVT. LTD . 2. RESPONDENT / ()&' 3. THE CONCERNED CIT (A) / < = 4. THE CONCERNED CIT / < = 5. DR I BENCH, ITAT, MUMBAI / :>0 (,$ , . . . 6. GUARD FILE/ 0 ? ):, (, //TRUE COPY// '1$ / BY ORDER, @ / 4 ! DY./ASST. REGISTRAR , /ITAT, MUMBAI