DCIT CIR. 7(1), MUMBAI V. M/s. NOVARTIS INDIA LTD. (HINDUSTAN CIBA GIEGY LTD.), MUMBAI

MA 732/MUM/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 7090 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-08-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 1999-2000
• Appeal Filed On: 13-09-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AJIT PAL SINGH DAIA
• Assessee Lawyers: HITESH SOMAIYA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I , MUMBAI BEFORE SHRI B.R. BASKARAN , HON'BLE ACCOUNTANT MEMBER & SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER M.A. NO. 732 /MUM/201 7 [ ARISING OUT OF ITA.NO. 5980/ MUM /2004 (A.Y: 1999 - 2000 ) ] D .C.I.T 7 (2) (2) ROOM NO. 623, 6 TH FLOOR AAYAKAR BHAVAN, M.K. ROAD MUMBAI - 400 020 V. M/S. NOVARTIS INDIA LTD. {FORMERLY KNOWN AS HINDUSTAN CIBA GEIGY LTD.} SANDOZ HOUSE, DR. A.B. ROAD, MUMBAI 400 018 PAN: AAACH 2914 F (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI HITESH SOMAIYA DEPARTMENT BY : SHRI AJITPALSINGH DAIA DATE OF HEARING : 03.08.2018 DATE OF PRONOUNCEMENT : 10 .08 .2018 O R D E R PER C. N. PRASAD (JM) 1. THROUGH THIS MISCELLANEOUS APPLICATION THE REVENUE SUBMITTED THAT THE TRIBUNAL WHILE DISPOSING OF F THE APPEAL OF THE REVENUE IN ITA.NO.5980/ MUM /2004 DATED 25.01.2017 FOR THE ASSESSMENT YEAR 1999 - 2000 G ROUND NO.5 RELATING TO THE DISALLOWANCE ON ACCOUNT OF INCREMENTAL LIABILITY FOR PAYMENT OF PENSION (VRS SCHEME ) IS NOT ADJUDICATED. THEREFO RE, IT IS PRAYED THAT THE SAME BE DISPOSED OF BY 2 M.A. NO.732/MUM/2017 M/S. NOVARTIS INDIA LTD. MODIFYING THE COMMON ORDER PASSED BY THE TRIBUNAL FOR THE ASSESSMENT YEARS 1997 - 98 TO 1999 - 2000. 2. LD. COUNSEL FOR THE ASSESSEE FAIRLY SUBMITTED THAT GROUND NO.5 IS COMMON FOR THE ASSESSMENT YEARS 1998 - 98 & 19 9 9 - 2000 AND IN THE BODY OF THE ORDER OF THE TRIBUNAL AT PARA NO.23 THE GROUND RELATING TO ASSESSMENT YEAR 1998 - 99 ONLY WAS DISPOSED OF F BY MENTIONING THE AMOUNT OF .3.09 CRORES RELATING TO ASSESSMENT YEAR 1998 - 99. LEARNED COUNSEL FOR THE ASSESSEE SUBMITT ED THAT THE TRIBUNAL BY OVERSIGHT APPEARS TO HAVE NOT MENTIONED THE DISALLOWANCE OF .2.66 CRORES MADE ON ACCOUNT OF INCREMENTAL LIABILITY RELATING TO THE ASSESSMENT YEAR 1999 - 2000 AND T HEREFORE, HE SUBMITTED THAT THE TRIBUNAL MAY MODIFY THE ORDER IN PARA NO. 2 3 ACCORDINGLY. 3. ON HEARING BOTH THE SIDES , WE NOTICE THAT THE TRIBUNAL DISPOSED OF F THE GROUND NO.5 RELATING TO INCREMENTAL LIABILITY FOR THE ASSESSMENT YEAR 1998 - 99 FOLLOWING THE ORDER FOR THE ASSESSMENT YEAR 1997 - 98. WHILE DISPOSING OF F THE SAID GROUND THE TRIBUNAL BY OVERSIGHT OMITTED TO MENTION THE AMOUNT OF .2.66 CRORES RELATING TO THE INCREMENTAL LIABILITY PERTAINING TO ASSESSMENT YEAR 199 9 - 2000. THEREFORE, THIS IS A MISTAKE APPARENT FROM RECORD WHICH NEEDS RECTIFICATION. IN THE CIRCUMSTAN CES, WE MODIFY OUR ORDER DATED 25. 0 1.2017 BY REPLACING THE FOLLOWING PARA IN PLACE OF PARA NO.23 OF OUR ORDER DATED 25.01.2017 AS UNDER: - 3 M.A. NO.732/MUM/2017 M/S. NOVARTIS INDIA LTD. 23. GROUND NO.5 FOR THE ASSESSMENT YEARS 1998 - 99 & 1999 - 2000 IS ABOUT INCREMENTAL LIABILITY ON ACCOUNT OF VRS, AMOUNTING TO .3.09 CRORES AND . 2.66 CRORES RESPECTIVELY IN RESPECT OF WORKERS WHO HAD RETIRED IN THE EARLIER YEARS FROM THE ASSESSEE IS UNIT AT BHANDUP . WHILE ADJUDICATING THE FIRST GROUND OF APPEAL, FOR THE ASSESSMENT YEAR 1997 - 98, WE HAVE DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. FOLLOWING THE SAME , GROUND NO.5 FOR A.Y. 1998 - 99 & 1999 - 2000 IS DECIDED AGAINST THE A.O. AND IN FAVOUR OF THE ASSESSEE. 4. OUR ORDER IS MODIFIED AS INDICATED ABOVE TO RECTIFY THE MISTAKE. 5. IN THE RESULT, MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS DISPOSED OF F AS INDICATED ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON THE 10 TH AUGUST , 2018 SD/ - SD/ - ( B.R. BASKARAN ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 10 / 0 8 / 2018 GIRIDHAR , S R. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER (ASSTT. REGISTRAR) ITAT, MUM