RUSAN PHARMA LTD, MUMBAI V. IO CIT 9(3)(4), MUMBAI

ITA 6802/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 84492 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-12-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 03-12-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 06-11-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BE NCH, MUMBAI , !' #$% , !& ! ' BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./I .T.A. NO. 6802/MUM/2012 ( ( ( ( ( / ASSESSMENT YEAR : 2009-10 M/S. RUSAN PHARMA LTD., RUSAN HOUSER, 58D, GOVT. INDUSTRIAL ESTATE, CHARKOP, KANDIVALI (E), MUMBAI- 400 067 / VS. THE ITO 9(3)(4), MUMBAI ) !& ./ * ./ PAN/GIR NO. : AABCR 3179H ( )+ / APPELLANT ) .. ( ,-)+ / RESPONDENT ) )+ . ! / APPELLANT BY: SHRI PRAKASH PANDIT ,-)+ / . ! / RESPONDENT BY: SHRI LOVE KUMAR / 0& / DATE OF HEARING :03.12.2014 12( / 0& / DATE OF PRONOUNCEMENT :03.12.2014 !3 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE LD. CIT(A)-20, MUMBAI DT.10.8.2012 PERTAINING TO A.Y.20 09-10. 2. THE ASSESSEE HAS RAISED 15 SUBSTANTIVE GROUNDS O F APPEAL. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE STATED THA T HE IS NOT PRESSING GROUND NO. 1,2 & 14 & 15. THESE GROUNDS ARE ACCORD INGLY DISMISSED AS ITA NO. 6802/M/12 2 NOT PRESSED. THE LD. COUNSEL FOR THE ASSESSEE FURT HER BROUGHT TO OUR NOTICE THAT THE GRIEVANCE RAISED VIDE REMAINING GRO UNDS OF APPEAL ARE COVERED BY THE DECISION OF THE TRIBUNAL IN ASSESSEE S OWN CASE IN EARLIER YEARS IN ITA NOS. 59 & 8703/M/2011 AND ITA NOS. 106 3 & 8691/M/2011 VIDE ORDER DT. 16.1.2014. 3. GROUND NO. 3 & 4 RELATE TO UPHOLDING THE FINDING S OF THE AO THAT SUNDRY BALANCES WRITTEN OFF DO NOT QUALIFY FOR DED UCTION U/S. 10A/10B OF THE ACT. 3.1. THE TRIBUNAL HAS CONSIDERED A SIMILAR ISSUE IN EARLIER ASSESSMENT YEAR VIDE ORDER DT. 16.1.2014 (SUPRA). THE DISCUSS IONS HAVE BEEN PLACED AT PARA-23 OF THE ORDER OF THE TRIBUNAL AND AT PARA -27, THE TRIBUNAL HAS RESTORED THIS ISSUE TO THE FILE OF THE AO WITH A DI RECTION TO READJUDICATE THE SAME AS PER THE DECISION OF THE TRIBUNAL GIVEN IN R ESPECT OF A.Y. 2007-08. AS NO DISTINGUISHING FACTS HAVE BEEN BROUGHT ON REC ORD, RESPECTFULLY FOLLOWING THE DECISION OF THE CO ORDINATE BENCH, GR IEVANCE RAISED VIDE GROUND NO. 3 & 4 ARE RESTORED TO THE FILE OF THE AO TO READJUDICATE THE SAME AS PER THE DECISION OF THE TRIBUNAL GIVEN IN E ARLIER YEARS. THESE GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSE. 4. GROUND NO. 5 &6 RELATE TO THE DISALLOWANCE OF RS . 4,89,014/- ON ACCOUNT OF COMMISSION & BROKERAGE BEING THE AMOUNT NOT QUALIFYING FOR DEDUCTION U/S. 10A/10B OF THE I.T. ACT. 4.1. THIS ISSUE ALSO FINDS PLACE AT PARA-23 OF THE ORDER OF THE TRIBUNAL IN EARLIER YEARS AND THE FINDINGS OF THE TRIBUNAL ARE AT PARA-27 WHEREIN THE TRIBUNAL HAS RESTORED THIS ISSUE TO THE FILE OF THE AO WITH A DIRECTION TO READJUDICATE THE SAME AS PER THE DECISION GIVEN BY THE TRIBUNAL FOR A.Y. ITA NO. 6802/M/12 3 2007-08. RESPECTFULLY FOLLOWING THE DECISION OF TH E TRIBUNAL, GRIEVANCES RAISED VIDE GROUND NO. 5 & 6 ARE RESTORED TO THE FI LE OF THE AO WITH A DIRECTION TO READJUDICATE THE SAME AS PER THE DECIS ION OF THE TRIBUNAL GIVEN IN RESPECT OF A.Y. 2007-08. THESE GROUNDS AR E ACCORDINGLY TREATED AS ALLOWED FOR STATISTICAL PURPOSE. 5. GROUND NO. 7 & 8 RELATE TO THE DISALLOWANCE OF R S. 86,93,429/- ON ACCOUNT OF EXCHANGE VARIATION GAIN AS AMOUNT NOT QU ALIFYING FOR DEDUCTION U/S. 10A/10B OF THE I.T. ACT. 5.1. THIS ISSUE ALSO FIND PLACE AT PARA-23 OF THE O RDER OF THE TRIBUNAL AND THE DECISION IS AT PARA-27 WHEREIN THE TRIBUNAL HAS RESTORED THIS ISSUE TO THE FILE OF THE AO TO BE DECIDED IN LINE WITH TH E DECISION OF THE TRIBUNAL GIVEN IN RESPECT OF A.Y. 2007-08. RESPECT FULLY FOLLOWING THE DECISION OF THE CO ORDINATE BENCH, GROUND NO. 7 & A RE RESTORED TO THE FILE OF THE AO WITH A SIMILAR DIRECTION. GROUND NO. 7 & 8 ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSE. 6. GROUND NO. 9 & 10 RELATE TO NOT TREATING DEPB I NCENTIVE OF RS. 11,58,251/-. 6.1. THE TRIBUNAL AT PARA-27 OF ITS ORDER HAS HELD THAT DISALLOWANCE OF DEPB INCENTIVE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE O F ARTS AND CRAFTS EXPORT VS ITO 246 CTR 463. RESPECTFULLY FOLLOWING THE FINDINGS OF THE TRIBUNAL IN THE LIGHT OF THE DECISION OF THE HONBL E JRISDICTIONAL HIGH COURT, GROUND NO. 9 & 10 ARE ALLOWED. ITA NO. 6802/M/12 4 7. GROUND NO. 11 & 12 RELATE TO THE DISALLOWANCE OF RS. 96,73,296/- ON ACCOUNT OF PRODUCT REGISTRATION CHARGES. 7.1. THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSE E BY THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2001-0 2 WHICH HAS BEEN CONSIDERED BY THE TRIBUNAL IN ASSESSEES OWN CASE V IDE ORDER MENTIONED HEREINABOVE AT PARA-28 OF ITS ORDER AND AT PARA-29, THE TRIBUNAL HAS FOLLOWED THE ORDER OF THE TRIBUNAL FOR A.Y. 2002-03 AND ALLOWED THIS GROUND OF APPEAL. AS NO DISTINGUISHING FACTS/DECIS ION HAVE BEEN BROUGHT BEFORE US, RESPECTFULLY FOLLOWING THE DECISION OF T HE CO ORDINATE BENCH, GROUND NO. 11 & 12 ARE ALLOWED. 8. THE GRIEVANCE RAISED VIDE GROUND NO. 13 IS CONSE QUENTIAL TO THE GRIEVANCE RAISED VIDE AFOREMENTIONED GROUNDS OF APP EAL THEREFORE BECOME OTIOSE. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD DECEMBER, 2014 SD/- SD/- (VIJAY PAL RAO ) (N.K. BILLAIYA) /JUDICIAL MEMBER !& / ACCOUNTANT MEMBER MUMBAI; 4 DATED : 3 RD DECEMBER, 2014 . . ./ RJ , SR. PS ITA NO. 6802/M/12 5 !3 !3 !3 !3 / // / ,0 ,0 ,0 ,0 5!(0 5!(0 5!(0 5!(0 / COPY OF THE ORDER FORWARDED TO : 1. )+ / THE APPELLANT 2. ,-)+ / THE RESPONDENT. 3. 6 ( ) / THE CIT(A)- 4. 6 / CIT 5. 78 ,0 , , / DR, ITAT, MUMBAI 6. 8 9 / GUARD FILE. !3 !3 !3 !3 / BY ORDER, -0 ,0 //TRUE COPY// : :: : / ; ; ; ; (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI