DCIT CIR 2(1), THANE V. BAYER BIOSCIENCE P. LTD ( FORMERLY KNOWN AS PROAGRO SEED CO. LTD), NEW DELHI

MA 115/MUM/2023

AI Insights

The case involves Bayer Bioscience Pvt. Ltd. (formerly known as Proagro Seed Co. Ltd.) and the Deputy Commissioner of Income Tax, Circle 2(1), Thane. The dispute centered on the assessment year 2005-06, specifically concerning the treatment of a provision for special discount and sales return in the financial statements. The original tribunal decision mistakenly dismissed ground number 4 of the revenue's appeal, which contested the deletion of an addition on account of these provisions. The Tribunal, upon realizing the oversight, corrected the error, allowing the revenue's appeal and reinstating the provision as a valid expense for the assessment year in question.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131323 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 10 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-07-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-04-2023
• Assessment Year: 2005-2006
• Appeal Filed On: 30-01-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

Page | 1 MA No.115/Mum/2023 Bayer Bioscience P. Ltd; A.Y. 2005-06 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, JM AND SHRI PRASHANT MAHARISHI, AM MA No.115/Mum/2023 (Assessment Year: 2005-06) D C IT , C ir 2 ( 1 ) R o om N o .2 2 , B-W in g, 6 th F l o o r , A s h a r IT P a r k , W ag le In d u s tr ia l E s t a te , T h a n e-4 0 0 6 0 4 Vs. M/s Bayer Bioscience Pvt. Ltd. (formerly known as Proagro Seed Co. Ltd.) Bayer House, Central Avenue Hiranandani Gardens, Powai, Mumbai-400 076 (Appellant) (Respondent) PAN No. AAACP3459M Assessee by : Mr. Hemen Chandariya, AR Revenue by : Ms. Mahita Nair, DR Date of hearing: 21.04.2023 Date of pronouncement : 11.07.2023 O R D E R PER PRASHANT MAHARISHI, AM: 01. This miscellaneous application is filed by the deputy Commissioner of income tax, Circle 2 (1) Thane in ITA number 6342/M/2009 for assessment year 2005 – 06 dated 29/4/2022 wherein the only error pointed out is with respect to disposal of ground number 4 of the appeal wherein the coordinate bench in paragraph number 11 held that „ground number 4 was not pressed and therefore it is dismissed.”. In fact that ground should have been held to be allowed in favour of the revenue. Page | 2 MA No.115/Mum/2023 Bayer Bioscience P. Ltd; A.Y. 2005-06 02. The learned departmental representative reiterated the facts stated in the miscellaneous application. The learned authorized representative also agreed with the same. 03. We have carefully considered the rival contention and perused the order of the coordinate bench dated 29/4/2022. The ground number 4 of the appeal filed by the revenue is against the deletion of the addition on account of provision for special discount of ₹ 13,030,942/– which was disallowed by the learned assessing officer that the liability did not crystallized during the year and the provision of sales return amounting to ₹ 2,273,735/– is for an uncertain obligation and to that extent it is contingent. During the hearing, the learned authorized representative has categorically held that the above expenditure has already been allowed to the assessee in assessment year 2004 – 05. Therefore as this is the appeal for assessment year 2005 – 06, the ground of revenue should have been allowed. Therefore there is an error apparent from the record which needs to be rectified. Accordingly we reinstate the paragraph number 11 of the order as under:- “Ground number 4 was not contested by the learned authorized representative as the deduction is already allowed in assessment year 2004 – 05 and therefore ground of appeal of the learned AO is allowed.” 04. In the result, miscellaneous application filed by the learned AO is allowed. Order pronounced in the open court on 11.07. 2023. Sd/- Sd/- (AMIT SHUKLA) (PRASHANT MAHARISHI) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Mumbai, Dated: 11.07. 2023 Sudip Sarkar, Sr.PS Page | 3 MA No.115/Mum/2023 Bayer Bioscience P. Ltd; A.Y. 2005-06 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai