THE DY.CIT, CENTRAL CIRCLE-2(1), AHMEDABAD V. M/S. ZYDUS LIFESCIENCES LIMITED (FORMERLY KNOWN AS M/S. CADILA HEALTHCARE LTD.), AHMEDABAD

MA 62/AHD/2024

AI Insights

The case involves the Deputy Commissioner of Income Tax, Central Circle-2(1), Ahmedabad as the appellant and Zydus Lifesciences Ltd. as the respondent. Initially, the Revenue's appeal was dismissed due to low tax effect as per CBDT Circular No. 17/2019. However, the Revenue sought to recall this order, citing a Revenue audit objection that was accepted, thus falling under an exception to the circular. The tribunal allowed the Miscellaneous Application, acknowledging the need for a re-hearing based on the new grounds presented.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473803 (ITAT-AHMEDABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-01-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Laws Referred To: CBDT Circular No. 17/2019, CBDT's Circular 03/2018 dated 11th July 2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MUKESH PATEL
• Assessee Lawyers: RIGNESH DAS
• Keywords: Tax effect; Audit objection

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER M.A. No.62/Ahd/2024 (in ITA No.530/Ahd/2023) (Assessment Year: 2010-11) Deputy Commissioner of Income Tax, Central Circle-2(1), Ahmedabad Vs. Zydus Lifesciences Ltd. (Formerly known as M/s. Cadila Healthcare Ltd.), Zydus Tower, Opp. Iskcon Temple, Satellite Crossroads, Ahmedabad [PAN No.AAACC6253G] (Appellant) .. (Respondent) Appellant by : Shri Mukesh Patel, A.R. Respondent by: Shri Rignesh Das, Sr. D.R. Date of Hearing 20.09.2024 Date of Pronouncement 03.01.2025 O R D E R PER SIDDHARTHA NAUTIYAL, JM: The brief facts of the case are that in the original order, the appeal of the Revenue was dismissed on account of low tax effect in view of CBDT Circular No. 17/2019. However, a liberty was given to the Revenue to seek restoration of appeal on showing inapplicability of the aforesaid CBDT Circular, in any manner. 2. The Department has filed the present Miscellaneous Appeal, seeking recall of the earlier order on the ground that the issue involved in the case has arisen, due to Revenue audit objection which was also accepted. Therefore, the case is covered under the exception mentioned in Para 10(c) of CBDT’s Circular 03/2018 dated 11th July 2018. The Department has also furnished MA No.62/Ahd/2024 (in ITA No. 530/A/23) DCIT vs. Zydus Lifesciences Ltd. Asst.Year –2010-11 - 2 - the necessary supporting documents to show that the Revenue audit objection has also been accepted by the concerned officer. Accordingly, the Miscellaneous Application of the Revenue is allowed and the matter is directed to be fixed for hearing in due course. 3. The Ld. Counsel for the assessee has also not objected to the contentions of the Ld. D.R. in the present Miscellaneous Application. 4. In the result, the Miscellaneous Application filed by the Department is allowed and the matter may be fixed for hearing in due course. This Order pronounced in Open Court on 03/01/2025 Sd/- Sd/- (NARENDRA P. SINHA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 03/01/2025 TANMAY, Sr. PS TRUE COPY आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, राजोकट / DR, ITAT, Rajkot 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 03.01.2025 2. Date on which the typed draft is placed before the Dictating Member 03.01.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 03.01.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement 03.01.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 03.01.2025 7. Date on which the file goes to the Bench Clerk 03.01.2025 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Dispatch of the Order………………………………… "