EMMELLEN BIOTECH PHARMACEUTICALS LTD, MUMBAI v. ACIT RG 10(3), MUMBAI

ITA 6419/MUM/2009 | 2006-2007
Pronouncement Date: 15-07-2011 | Result: Allowed

Appeal Details

RSA Number 641919914 RSA 2009
Assessee PAN AAACE1154C
Bench Mumbai
Appeal Number ITA 6419/MUM/2009
Duration Of Justice 1 year(s) 7 month(s) 1 day(s)
Appellant EMMELLEN BIOTECH PHARMACEUTICALS LTD, MUMBAI
Respondent ACIT RG 10(3), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 15-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted H
Tribunal Order Date 15-07-2011
Date Of Final Hearing 07-07-2011
Next Hearing Date 07-07-2011
Assessment Year 2006-2007
Appeal Filed On 14-12-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH H MUMBAI. BEFORE SHRI P.M. JAGTAP ACCOUNTANT MEMBER AND SHRI R.S.PADVEKAR JUDICIAL MEMBER. I.T.A. NO.6419/MUM/2009 ASSESSMENT YEAR : 2006-07. EMMELLEN BIOTECH PHARMACEUTICALS LTD. ASSTT. COMMISSIONER OF 501 SENTINEL HIRANANDANI GARDENS VS. INCOME TAX 5 TH FLOOR CENTRAL AVENUE ROAD POWAI RANGE-10(3) MUMBAI 400076. MUMBAI. PAN : AAACE1154C APPELLANT.. RESPONDENT. APPELLANT BY : SHRI PARESH SHAPARIA. RESPONDENT BY : SHRI T.T. JACOB. O R D E R. PER P.M. JAGTAP A.M. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LEARNED CIT(APPEALS)-22 MUMBAI DATED 27-11-2009 WHEREBY HE CONFIRMED THE DISALLOWANCE OF RS.64 62 633/- MADE BY THE AO ON AC COUNT OF ASSESSEES CLAIM FOR DEDUCTION U/S 35(2AB). 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WH ICH IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND TRADING OF BULK DRUGS . THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 29-11-2 006 DECLARING A TOTAL INCOME OF RS.1 59 08 952/-. IN THE SAID RETURN A WEIGHTED D EDUCTION OF RS.1 93 87 359/- WAS CLAIMED BY THE ASSESSEE U/S 35(2AB) ON ACCOUNT OF RESEARCH AND DEVELOPMENT EXPENDITURE OF RS.1 29 24 906/- INCURRED DURING THE YEAR UNDER CONSIDERATION. WHILE EXAMINING THE SAID CLAIM OF THE ASSESSEE FOR DEDUCTION U/S 35(2AB) THE AO NOTICED DURING THE COURSE OF ASSESSMENT PROCEEDINGS THAT THE ASSESSEE HAS NOT 2 RECEIVED THE REQUIRED RECOGNIZATION FROM THE DEPART MENT OF SCIENTIFIC AND INDUSTRIAL RESEARCH GOVERNMENT OF INDIA. IN THE AB SENCE OF THE SAID RECOGNIZATION THE CLAIM OF THE ASSESSEE FOR WEIGHT ED DEDUCTION U/S 35(2AB) WAS HELD TO BE NOT ALLOWABLE BY THE AO AND HE ALLOWED THE CLAIM OF THE ASSESSEE ON ACCOUNT OF RESEARCH AND DEVELOPMENT EXPENDITURE ONL Y TO THE EXTENT OF RS.1 29 24 906/- WHICH RESULTED IN A DISALLOWANCE O F RS.64 62 632/-. THE MATTER WAS CARRIED BEFORE THE LEARNED CIT(APPEALS) AND IT WAS REITERATED ON BEHALF OF THE ASSESSEE COMPANY BEFORE HIM THAT THE REQUIRED APPRO VAL ALREADY SOUGHT FROM THE DEPARTMENT OF SCIENTIFIC AND INDUSTRIAL RESEARCH G OVERNMENT OF INDIA WAS STILL AWAITED. IN THE ABSENCE OF THE SAID APPROVAL THE L EARNED CIT(APPEALS) CONFIRMED THE DISALLOWANCE MADE BY THE AO ON ACCOUNT OF ASSES SEES CLAIM FOR DEDUCTION U/S 35(2AB). AGGRIEVED BY THE ORDER OF THE LEARNED CIT (APPEALS) THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. THE LEARNED COUNSEL FO R THE ASSESSEE HAS SUBMITTED THAT ALTHOUGH THE REQUIRED APPROVAL FROM THE CONCER NED AUTHORITY WAS SOUGHT BY THE ASSESSEE WELL IN TIME THE SAME HAS BEEN RECEIV ED BY THE ASSESSEE ONLY IN THE MONTH OF DECEMBER 2009. HE HAS SUBMITTED THAT THE ASSESSEE THEREFORE COULD NOT PRODUCE THE SAME EITHER BEFORE THE AO OR BEFORE THE LEARNED CIT(APPEALS). HE HAS URGED THAT AN OPPORTUNITY MAY THEREFORE BE GIVEN TO THE ASSESSEE TO PRODUCE THE SAME BEFORE THE AO IN SUPPORT OF ITS CL AIM FOR WEIGHTED DEDUCTION U/S 35(2AB). KEEPING IN VIEW ALL THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE WE ARE INCLINED TO ACCEDE TO THIS REQUEST OF THE LEARNED COUNSEL FOR THE ASSESSEE. ACCORDINGLY THE IMPUGNED ORDER OF THE LE ARNED CIT(APPEALS) ON THIS ISSUE IS SET ASIDE AND THE MATTER IS RESTORED TO TH E FILE OF THE AO WITH A DIRECTION TO DECIDE THE SAME AFRESH AFTER VERIFYING THE ASSESSEE S CLAIM FOR WEIGHTED DEDUCTION U/S 35(2AB) IN THE LIGHT OF APPROVAL GIVEN BY DEPAR TMENT OF SCIENTIFIC AND INDUSTRIAL RESEARCH GOVERNMENT OF INDIA. 3 4. IN THE RESULT THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 15 TH DAY OF JULY 2011. SD/- SD/- (R.S. PADVEKAR) (P.M. JAGTAP) JUDICIAL MEMBER. ACCOUNTANT MEMBER. MUMBAI DATED: 15 TH JULY 2011. WAKODE COPY FORWARDED T : 1. APPELLANT. 2. RESPONDENT. 3. C.I.T. 4. CIT(APPEALS) 5. D.R. ITAT MUMBAI. 6. GUARD FILE. //TRUE COPY// BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES MUMBAI.