PHARMMACIA HELATHCARE LTD ( SINCE MERGED WITH PFIZER LTD), MUMBAI V. ITO 2(2)(1), MUMBAI

ITA 948/MUM/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3412 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 29-12-2010
• Assessment Year: 2003-2004
• Appeal Filed On: 05-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D SONGATE
• Assessee Lawyers: R MURALIDHAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C : MUMBAI BEFORE SHRI D.MANMOHAN, VICE PRESIDENT AND SHRI B.RAMAKOTAIAH, ACCOUNTANT MEMBER ITA. NO. 948/MUM/2010 ASSESSMENT YEAR 2003-2004 PHARMACIA HEALTHCARE LTD. (SINCE MERGED WITH PFIZER LIMITED) MUMBAI 021 PAN AAACA5994Q VS. ITO 2 (2) (1) MUMBAI -400 020. (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI R. MURALIDHAR FOR RESPONDENT : SHRI D. SONGATE ORDER PER D. MANMOHAN, V.P. 1. IN THIS APPEAL THE ASSESSEE-COMPANY RAISED THE FOLLOWING GROUNDS : 1. THE COMMISSIONER OF INCOME TAX (APPEALS-5 (HEREINAFTER REFERRED TO AS THE CIT(A) ) ERRED IN CONFIRMING THE ADDITION UNDER SECTION 145A OF OUTSTANDING UNUTILISED MODVAT CREDIT BALANCE OF RS.1,58,195, APPEARING AT THE END OF THE YEAR. 1.1 THE APPELLANT SUBMITS THAT THE CIT(A) OUGHT TO HAVE, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, DELETED THE ABOVE ADDITION. 1.2 WITHOUT PREJUDICE, VALUATION OF PURCHASE, SALE AND OPENING STOCK SHOULD ALSO BE ADJUSTED (NOT VALUATION OF CLOSING STOCK ONLY). 2. THE CASE OF THE ASSESSEE WAS THAT THE ASSESSING OFFICER ERRED IN ADDING A SUM OF RS.1,58,195/-, REFERABLE T O UNUTILISED EXCISE DUTY, TO THE CLOSING STOCK. AT THE TIME OF HEARING, LEARNED COUNSEL RELIED UPON THE DECISION OF THE ITAT, MUMBAI BENCH IN THE CASE OF 2 GHARDA CHEMICALS LTD. VS. DCIT (2010) 130 TTJ 556 W HEREIN THE BENCH HELD THAT UNUTILISED MODVAT HAS TO BE INCLUDE D TO THE VALUE OF THE CLOSING STOCK AND, AT THE SAME TIME, FOR THE PU RPOSE OF GIVING EFFECT TO SECTION 145A OF THE ACT, THERE SHOULD BE A CORRE SPONDING ADJUSTMENT IN THE VALUE OF THE OPENING STOCK OF THA T YEAR. MATTER WAS REMANDED FOR GIVING EFFECT TO THE PROVISIONS OF SEC TION 145A IN ENTIRETY WITHOUT RESTRICTING ITS OPERATION TO CLOSING STOCK VALUATION ALONE. BOTH THE PARTIES ADMITTED THAT THE MATTER REQUIRES TO GO BACK TO THE FILE OF THE ASSESSING OFFICER TO RECONSIDER THE MATTER IN L INE WITH THE VIEW TAKEN IN THE AFORECITED DECISION. 3. HAVING REGARD TO THE RIVAL SUBMISSIONS WE RESPE CTFULLY FOLLOW THE DECISION OF THE ITAT CITED (SUPRA) AND R ESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR CONSIDERATION OF THE MATTER AFRESH. 4. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS THE DAY OF DECEMBER, 2010 (B.RAMAKOTAIAH) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATE DECEMBER, 2010 VBP/- COPY TO 1. PHARMACIA HEALTHCARE LTD. (SINCE MERGED WITH PFI ZER LIMITED), PFIZER CENTRE, PATEL ESTATE, S.V.ROAD, JOGESHWARI WEST , MUMBAI400 102 PAN AAACA5994Q 2. ITO 2(2) (1), R.NO.545, AAYAKAR BHAVAN, MK ROAD, MUMBAI 020. 3. CIT(A)-5, MUMBAI 4. CIT-2, MUMBAI 5. DR C BENCH 6. GUARD FILE TRUE COPY BY ORDER ASST. REGISTRAR, ITAT, MUMBAI BENCHES MUMBAI.