EISAI PHARMACEUTICALS INDIA P.LTD, MUMBAI V. JCIT (OSD) RG 8(1), MUMBAI

ITA 6612/MUM/2012

• Counselvise Citation: 661219914 RSA 2012
• Duration Of Justice: 1 year(s) 8 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 17-07-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 31-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAKASH L PATHADE

Judgement Text

E IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE S/SHRI H.L. KARWA, HONBLE PRESIDENT AND P.M . JAGTAP, AM .. , .. , ./ I.T.A. NO.6612 /MUM/2012 ( / ASSESSMENT YEAR : 2006-2007 EISAI PHARMACEUTICALS INDIA PVT. LTD., IST FLOOR, B WING, MARWAH CENTRE, KRISHNALAL MARWAH MARG, ANDHERI (E), MUMBAI 400 072. / VS. THE JOINT. COMMISSIONER OF INCOME TAX (OSD), RANGE 8(1), MUMBAI. ./ PAN : AABCE3924D ( ! / APPELLANT ) .. ( '#! / RESPONDENT ) A PPELLANT BY SHRI GIRISH DAVE R E SPONDENT BY : SHRI PRAKASH L. PATHADE ' ( / DATE OF HEARING : 17-07-2014 ' ( / DATE OF PRONOUNCEMENT : 30-7-2014 [ / O R D E R PER P.M. JAGTAP, A.M . : .. , THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. CIT(A) -16, MUMBAI DATED 26-09-2012 WHEREBY HE CON FIRMED THE PENALTY OF RS. 19,76,000/- IMPOSED BY THE A.O. U/S 271(1)(C) O F THE INCOME TAX ACT, 1961 IN RESPECT OF ADDITION OF RS. 58,70,488/- MADE TO THE TOTAL INCOME OF THE ASSESSEE ON ACCOUNT OF RESEARCH AND DEVELOPMENT EXP ENSES. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS OBSERV ED THAT THE ISSUE RELATING TO ITA 6612/M/12 2 THE DISALLOWANCE OF RESEARCH AND DEVELOPMENT EXPEND ITURE, IN RESPECT OF WHICH THE IMPUGNED PENALTY IS IMPOSED U/S 271(1)(C) OF THE ACT, HAS ALREADY BEEN RESTORED BY THE TRIBUNAL VIDE ITS ORDER DATED 30-05-2014 PASSED IN ITA NO. 1058, 5665 & 8275/MUM/2011 TO THE FILE OF THE A .O. FOR DECIDING THE SAME AFRESH AS PER THE DIRECTIONS GIVEN IN ITS ORDE R PASSED IN THE QUANTUM PROCEEDINGS. THE VERY BASIS OF PENALTY IMPOSED U/S 271(1)(C) OF THE ACT THUS NO MORE SURVIVES AND THE SAME IS LIABLE TO BE CANCE LLED HAVING NO LEGS TO STAND. WE THEREFORE CANCEL THE SAID PENALTY IMPOSED BY THE A.O. AND CONFIRMED BY THE LD. CIT(A) WITH A LIBERTY TO THE A .O. TO RE-INITIATE THE PENALTY PROCEEDING U/S 271(1)(C) OF THE ACT AFRESH IN ACCOR DANCE WITH LAW DEPENDING UPON THE ULTIMATE DECISION ON THE ISSUE RELATING TO THE DISALLOWANCE OF RESEARCH AND DEVELOPMENT EXPENDITURE IN THE SET ASI DE PROCEEDINGS. 3. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH JULY, 2014. ' . / 0 30-7-2014 ' SD/- SD/- (H.L. KARWA) (P.M. JAGTAP ) /PRESIDENT ACCOUNTANT MEMBER MUMBAI ; 0 DATED 30-7-2014 [ ITA 6612/M/12 3 .;../ RK , SR. PS ' #%& '& / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '#! / THE RESPONDENT. 3. < () / THE CIT(A) 16,, MUMBAI 4. < / CIT 8, MUMBAI 5. ? ';;A , ( A , / DR, ITAT, MUMBAI E BENCH 6. / GUARD FILE. / BY ORDER, #? '; //TRUE COPY// / ( DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI