DCIT, Circle, Yamunanagar V. M/s Symbiosis Pharmaceuticals Pvt. Ltd., Yamunanagar

MA 45/CHANDI/2020

AI Insights

The case involves the Department of Income Tax (Appellant) and M/s Symbiosis Pharmaceuticals P. Ltd. (Respondent) concerning the assessment year 2014-15. The Department filed a Miscellaneous Application (MA No. 45/Chd/2020) seeking to recall the Tribunal's earlier order and to address issues that were allegedly overlooked, specifically the addition of Rs. 1,81,48,854 due to low gross profit and the disallowance of deduction under section 80IC of the Income-tax Act. The Tribunal acknowledged the oversight regarding the addition of low gross profit and recalled the order to address this issue, scheduling a new hearing. However, the Tribunal rejected the Department's request regarding the deduction under section 80IC, affirming that the Assessee had made all substantial compliances necessary for the deduction, despite the late filing of the return.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128360 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 3 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-08-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 17-08-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 17-05-2020
• Other Referred Cases: Commissioner of Customers (Import) Vs. Dilip Kumar and Company and Ors, Right Tight Fasteners Pvt Ltd. Vs. ACIT-II (1)(1)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 80IC; 139(1); 80IC

Judgement Text

आयकर अपीलȣय अͬधकरण, चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’, CHANDIGARH BEFORE SHRI A.D. JAIN, VICE PRESIDENT & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER M.A.No. 45/Chd/2020 (Arising out of आयकर अपील सं./ITA No. 326/CHD/2020 Ǔनधा[रण वष[ / Assessment Year : 2014-15 The DCIT, Circle, Yamunanagar बनाम M/s Symbiosis Pharmaceuticals P. Ltd., 37/1, Kamboj Colony, Jagadhri, Yamunanagar èथायीलेखासं./PAN NO: AAJCS7595N अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरतीकȧओरसे/Assessee by : Sh. Rohit Goel, CA राजèवकȧओरसे/ Revenue by : Sh. Dharamvir, JCIT, Sr. DR स ु नवाईकȧतारȣख/Date of Hearing : 18.08.2023 उदघोषणाकȧतारȣख/Date of Pronouncement : 29.08.2023 आदेश/Order Per A.D. Jain, Vice President: The present Misc. Application arising out of ITA No. 326/Chd/2019 has been moved by the Department pleading therein for recalling the order dated 02.01.2020 passed by the Tribunal. MA. No. 45/Chd/2020 in ITA 326/Chd/2019 - M/s Symbiosis Pharmaceutical P. Ltd., Yamunanagar 2 2. The first contention is that the issue of addition of Rs. 1,81,48,854/-, on account of low gross profit declared by the Assessee has not been discussed by the Tribunal in its order dated 2.1.2020. It has been pleaded that as such, there occurred a mistake apparent from the record, which requires to be rectified by the rectification order and deciding this issue. 3. On the other hand, on behalf of the Assessee it has been contented that during the appellate proceedings, apropos ground No.4 raised by the Department in this regard, the ld. DR had confined his arguments to Ground Nos. 1 to 3 and no argument had been addressed with regard to Ground No.4, though on behalf of the Assessee, a Synopsis along with case laws had been submitted with regard to this ground also. It has, however, not been denied that the said Ground No.4 has not been decided by the Tribunal, either because it was not pressed by the Deaprtment or otherwise, which requires to be verified and decided by the Bench. 4. We find nothing on record to suggest that the ld. DR had restricted his arguments with regard to Ground No.4. However, Ground No.4 has remained undecided. Therefore, evidently, there is a mistake apparent from the record qua this issue and the grievance of the Department in this regard is justified. MA. No. 45/Chd/2020 in ITA 326/Chd/2019 - M/s Symbiosis Pharmaceutical P. Ltd., Yamunanagar 3 5. Accordingly, on this issue our order dated 2.1.2020 is hereby recalled to this limited extent. The Registry is directed the fix the appeal for hearing qua Ground No.4 raised by the Department. 6. The other request of the Department is of reconsidering the issue of disallowance of deduction u/s 80IC of the Income-tax Act, 1961 in view of the provisions of section 80AC of the Act. This section, so stated the Department, provides that in order to claim deduction u/s 80IC of the Act, the Assessee is required to file its return of income on or before the due date as prescribed under section 139(1) of the Act; and that, however, in the present case, the Assessee filed its return of income after the due date. Reliance has been sought to be placed on the decision of the Hon'ble Supreme Coury in the case of “Commissioner of Customers (Import) Vs. Dilip Kumar and Company and Ors”, order dated 30.7.2018 in Civil Appeal No. 3327 of 2007, which was followed by the Mumbai Bench of the Tribunal in the case of “Right Tight Fasteners Pvt Ltd. Vs. ACIT-II (1)(1)”, in order dated 11.1.2021, in ITA No. 3101/Mum/2018. 7. The ld. Counsel for the Assessee, on the other hand, has contended that there is no force in this request of the Department also, since the Tribunal, while passing the order dated 2.1.2020, vide para No.10, has taken into consideration the fact that substantial compliances which were intended to be used by the Department, were MA. No. 45/Chd/2020 in ITA 326/Chd/2019 - M/s Symbiosis Pharmaceutical P. Ltd., Yamunanagar 4 duly made before the due date of filing of the return though the return itself could not be filed before such date due to circumstances beyond the control of the Assessee. 8. The grievance of the Department, we find, is misplaced here. The Tribunal vide order dated 2.1.2020 has discussed this matter at length in paragraph 10. The Tribunal order for A.Y. 2013-14 has been followed under exactly similar facts and circumstances, holding in favour of the Assessee, stating that the activities of the Assessee had not undergone any material change and all substantial compliances stood made, as intended to be used by the Department and everything was available to the taxing authorities, despite the lapse of the Counsel in having been filed the return beyond the due date. Thus, what the Department is seeking is not a recall of the order on the issue but a review of the order thereon. This, it is trite, is impermissible in law and the request is liable to be rejected. The same is rejected. 9. Therefore, on the first issue, the order is recalled, whereas on the other issue, the request of the Department is rejected. 10. The Registry is directed to fix the appeal afresh for hearing on ground No.4, in due course, under notice to the parties. MA. No. 45/Chd/2020 in ITA 326/Chd/2019 - M/s Symbiosis Pharmaceutical P. Ltd., Yamunanagar 5 11. In the result, the Application filed by the Department is partly allowed, as indicated. Order pronounced on 29.08.2023. Sd/- Sd/- (VIKRAM SINGH YADAV) ( A.D. JAIN ) Accountant Member Vice President Dated : 29.08.2023 “आर.के.” आदेशकȧĤǓतͧलͪपअĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकरआय ु Èत/ CIT 4. ͪवभागीयĤǓतǓनͬध, आयकरअपीलȣयआͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar