M/s Biocon Limited , Bangalore V. Deputy Commissioner of Income Tax Large Taxpayers Unit , Bangalore

MA 17/BANG/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 4255 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 01-03-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER M.P. No. 17/Bang/2022 (in ITA No. 74/Bang/2019) Assessment Year : 2010-11 M/s. Biocon Ltd., 20 th KM, Hosur Road, Electronic City, Bangalore – 560 100. PAN: AAACB7461R Vs. The Deputy Commissioner of Income Tax, Large Taxpayer Unit, Bangalore. APPELLANT RESPONDENT Assessee by : Shri Padamchand Khincha, CA Revenue by : Smt. Priyadarshini Basaganni, Addl. CIT (DR) Date of Hearing : 22-04-2022 Date of Pronouncement : 23-05-2022 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present miscellaneous petition is preferred by assessee seeking certain rectification of typographic mistakes in order dated 31.08.2021 passed by this Tribunal. 2. The Ld.AR referring to para 5.9 at page 22 of the impugned order submitted that, prima facie this Tribunal observes that there is a nexus between the foreign exchange losses with assessee’s business. However, subsequently, on page 23, this Tribunal observes as under: “However we note that the details of forward contracts and the nexes with its business being Page 2 of 3 M.P. No. 17/Bang/2022 (in ITA No. 74/Bang/2019) capital or revenue have not been submitted by the assessee before the Ld.AO.” 3. The Ld.AR submits that this is contradicting in itself. 3.1 We have perused the relevant submissions vis-à-vis the observations of this Tribunal in para 5.9. We note that the issue is remanded for the revenue to verify the nexus between the foreign exchange losses earned and the activities carried on by the assessee which is furthermore established by the observation in para 5.12 at page 25 of the impugned order that reads as under: “5.12 At the outset, it has also been submitted by the Ld.AR that the losses are within the limits of the receivables as far as the mark to market losses are concerned. Assessee is directed to file all relevant documents/forward contracts to establish the nexes with the business of assessee and also the fact that such contracts are on account of revenue and not on capital.” 4. On conjoint reading of the observations on this issue, the Ld.AO is directed to verify that, the losses are within the limits of receivables as far as market to market losses are concerned which has not been considered by the authorities below at all. There has been voluminous details that was filed by the assessee in respect of the same, which went out of sight by the revenue authorities. The Ld.AO is directed to consider the evidences filed in respect of this issue based on the principles laid down by this Tribunal in various decisions referred to in the impugned order and to consider the claim in accordance with law. To this extent, the clarification to the Ld.AO is given in order to do justice on this issue. We also note a small typographic mistake at the first line of page 23 in the impugned order which reads as under: “has an excess to assessee’s business. This position has not” Page 3 of 3 M.P. No. 17/Bang/2022 (in ITA No. 74/Bang/2019) Henceforth this line shall be read as under: “has a nexus to assessee’s business. This position has not” Accordingly, this M.P. is disposed off. In the result the miscellaneous petition filed by assessee stands allowed as indicated hereinabove. Order pronounced in the open court on 23 rd May, 2022. Sd/- Sd/- (CHANDRA POOJARI) (BEENA PILLAI) Accountant Member Judicial Member Bangalore, Dated, the 23 rd May, 2022. /MS / Copy to: 1. Appellant 4. CIT(A) 2. Respondent 5. DR, ITAT, Bangalore 3. CIT 6. Guard file By order Assistant Registrar, ITAT, Bangalore