DCIT Circle 15 (1), v. Ranbaxy Labs Ltd,

ITA 1636/DEL/2007 | 1998-1999
Pronouncement Date: 28-09-2011 | Result: Partly Allowed

Appeal Details

RSA Number 163620114 RSA 2007
Assessee PAN RANGE1512T
Bench Delhi
Appeal Number ITA 1636/DEL/2007
Duration Of Justice 4 year(s) 5 month(s) 24 day(s)
Appellant DCIT Circle 15 (1),
Respondent Ranbaxy Labs Ltd,
Appeal Type Income Tax Appeal
Pronouncement Date 28-09-2011
Appeal Filed By Department
Order Result Partly Allowed
Bench Allotted I
Tribunal Order Date 28-09-2011
Date Of Final Hearing 04-11-2009
Next Hearing Date 04-11-2009
Assessment Year 1998-1999
Appeal Filed On 03-04-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: I NEW DELHI BEFORE SMT. DIVA SINGH JUDICIAL MEMBER AND SHRI B.C.MEENA ACCOUNTANT MEMBER ITA NO: 349/DEL/2007 A.Y. : 1998-99 M/S RANBAXY LABORATORIES LTD. VS. THE ACIT RANGE 15 12 TH FLOOR DEVIKA TOWERS NEW DELHI 6 NEHRU PLACE NEW DELHI - 19 ITA NO: 1636/DEL/2007 A.Y. : 1998-99 DCIT CIRCLE 15(1) VS. M/S RANBAXY LABS. LTD. NEW DELHI NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY : SH. AJAY VOHRA SH.ROHIT JAIN ADV. DEPT. BY : SH. MOHANISH VERMA CIT D.R. O R D E R PER DIVA SINGH JUDICIAL MEMBER ITA 349/DEL/2007 FOR A.Y. 1998-99 AGAINST THE ORDE R DT. 28.12.2006 OF CIT(A)-XVIII NEW DELHI CAME TO BE LI STED ON THE CAUSE LIST OF 26 TH SEPT.2011AS A RESULT OF THE JUDGEMENT OF HONBLE DELHI HIGH COURT IN ITA 1118/2010 DT. 19.5.2011. ON THE SAI D LD.CIT D.R. MOVED A PETITION SEEKING TIME ON THE GROUND THAT REPORT F ROM THE A.O. IS REQUIRED SO AS TO ADDRESS THE ISSUE INVOLVED. LD.A .R. ADDRESSING THE PETITION SEEKING TIME STATED THAT IN FACT THE ISSUE HAS TO GO BACK TO THE AO AS FACTS NEED VERIFICATION AT THE STAGE OF THE A .O. AS SUCH THE REPORT OF THE AO WOULD NOT BE REQUIRED. IN THE FACE OF THE A SSESSEES STAND THAT 2 THE ISSUE NEEDS TO BE LOOKED INTO BY THE A.O. THE L D.CIT D.R. HAD NO OBJECTION. HOWEVER CONSOLIDATED ORDER WHEREIN BOT H THE ASSESSEES APPEAL AND THE DEPARTMENTAL APPEAL WAS CONSIDERED. IT WAS POINTED OUT BY THE LD.A.R. THAT THE FIXATION HAS BEEN DONE OF ITA 349/DEL/2007 WHEREAS THE DIRECTION GIVEN BY THE HONBLE HIGH CO URT IS IN THE DEPARTMENTAL APPEAL I.E. ITA 1636/DEL/2007. INVIT ING ATTENTION TO THE CONSOLIDATED ORDER DT. 27.11.2009 IT WAS POINTED OU T THAT BY THE SAID ORDER IN ITA 349/DEL/2007 FILED BY THE ASSESSEEAND IN ITA 1636/DEL/2007 FILED BY THE DEPARTMENT BOTH HAD BEEN DISPOSED. THE SAID APPEALS IT WAS POINTED OUT WERE FILED AGAINS T THE ORDER DATED 27.11.2006 OF THE CIT(A). IT WAS HIS SUBMISSION T HAT THE ASSESSEE AGGRIEVED BY THE FINDING IN GROUND NO.9 IN THE DEPA RTMENTAL APPEAL PARA 18.3 OF THE ORDER OF THE TRIBUNAL FILED AN APPEA L U/S 260A BEFORE THE HONBLE HIGH COURT. IN THE SAID APPEAL THE HONBLE HIGH COURT IT WAS SUBMITTED WAS PLEASED TO REMAND THE MATTER BACK TO THE TRIBUNAL. AS SUCH IT WAS CLARIFIED THE APPEAL WHICH SHOULD HAVE BEEN LISTED FOR HEARING IS ITA 1636/DEL/2007. REFERRING TO THE MATERIAL AV AILABLE ON RECORD NAMELY THE CONSOLIDATED ORDER OF THE TRIBUNAL IT WA S SUBMITTED THAT DIRECTION HAS BEEN GIVEN IN ITA 1636/DEL/2007. CON SIDERING THE SUBMISSIONS LD.CIT D.R. ALSO CONCURRED THAT THE D IRECTION HAD BEEN GIVEN IN ITA 1636/DEL/2007 IT WAS SUBMITTED THAT H E HAS NO OBJECTION IF THE ISSUE IS RESTORED TO THE A.O. HOWEVER SINCE THE SAID APPEAL WAS NOT LISTED FOR HEARING BEFORE THE BENCH APPEAL STOOD A DJOURNED TO 28 TH SEPTEMBER 2011 AND THE FOLLOWING ORDER SHEET ENTRY WAS PASSED: ORDER SHEET ENTRY 26 TH SEPT. 2011 : TIME SOUGHT BY LD.CIT D.R. MR.M.VER MA AND MR.AJAY VOHRA STATING THAT THE DIRECTION GIVEN BY THE HONBLE HIGH COURT IS IN (THE) DEPARTMENTAL APPEAL AND TH E APPEAL TO BE LISTED SHOULD HAVE BEEN ITA 1636/DEL/2007. MR.M.VE RMA CIT D.R. ON PERUSING STATED THAT THE DIRECTION GIVEN B Y THE HONBLE HIGH COURT IS IN THE SAID APPEAL. TO BE LISTED FO R HEARING AS PER RULES ON 28 TH SEPTEMBER 2011. 3 2. ON THE NEXT DATE I.E. ON 28.9.2011 LD.A.R. INVIT ED ATTENTION TO GROUND NO.9 IN ITA 1636/DEL/2007 WHICH IS THE APP EAL OF THE REVENUE AGAINST THE ABOVE MENTIONED ORDER I.E. 28.12.2006 O F CIT(A) NEW DELHI. IT IS SEEN THAT BOTH THESE APPEALS WERE DISPOSED BY THE TRIBUNAL VIDE ITS EARLIER ORDER DT. 27.11.2009 AND GROUND NO.9 OF THE REVENUE HAS BEEN CONSIDERED BY THE TRIBUNAL AT PAGE NOS. 24 TO 27 AN D VIDE PARA 18.3. THE COORDINATE BENCH PASSED THE FOLLOWING ORDER. 18.3. IN VIEW OF THE AFORESAID HONBLE APEX C OURT DECISION WE ARE OF THE OPINION THAT PROCESSING CHARGE PRODU CT DEVELOPMENT SERVICES AND MISC. RECEIPTS ARE INDEPENDENT INCOME WITHOUT HAVING ANY NEXUS WITH EXPORT TURNOVER. HENCE AOS ACTION IN THIS REGARD HAS TO BE UPHELD. HENCE WE SET ASIDE THE OR DERS OF THE LD.CIT(A) ON THIS ISSUE AND RESTORE TO THAT OF AO. 3. A PERUSAL OF THE JUDGEMENT OF THE HONBLE HIGH C OURT SHOWS THAT THE ASSESSEE BEING AGGRIEVED BY THE SAID FINDING T HE ISSUE AGITATED BEFORE THE HONBLE HIGH COURT AND THE HONBLE HIGH COURT IN ITA 1118/2010 VIDE ITS JUDGEMENT AND ORDER DATED 19.5.2 011 REMANDED THE ISSUE TO THE TRIBUNAL. IT IS SEEN THAT ON BEHALF O F THE ASSESSEE BEFORE THE HONBLE HIGH COURT RELIANCE HAS BEEN PLACED UPON CI T VS SHRI RAM HONDA POWER EQUIP 289 ITR 475. 4. IN THE LIGHT OF THE STAND OF THE PARTIES BEFORE THE BENCHTHE ISSUE IS RESTORED BACK TO THE FILE OF AO WITH THE DIRECTION TO DECIDE THE SAME IN ACCORDANCE WITH THE LAW BY WAY OF A SPEAKING ORDER . NEEDLESS TO SAY THAT THE ASSESSEE SHALL BE AFFORDED A REASONABLE O PPORTUNITY OF BEING HEARD. 4.1. IN VIEW OF THE ABOVE THE CONCLUSION IN PARA 2 1 OF ORDER DT. 27.11.2009 STANDS ON RECORD QUA THE ASSESSEES APP EAL AS IT REMAINS UNCHANGED SIMILARLY QUA THE REVENUES APPEAL ALSO S INCE SOME OF THE GROUNDS HAVE BEEN ALLOWED BY THE TRIBUNAL. THUS TH E CONCLUSION IN REGARD TO REVENUES APPEAL ALSO REMAINS THE SAME AS PARTLY ALLOWED. 4 5. IN THE RESULT THE APPEAL OF THE ASSESSEE AND THE REVENUE STAY UNCHANGED AS PARTLY ALLOWED AS PER DECISION PRONOUN CED IN THE OPEN COURT AT THE TIME OF HEARING PRONOUNCED IN THE OPEN COURT ON 28.9.2011. SD/- SD/- (B.C.MEENA) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 28.9. 2011 *MANGA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CI T(A); 5.DR; 6.GUARD FILE BY ORDER DY. REGISTRAR