DECCAN HEALTH CARE PRIVATE LIMITED,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE-17(1), HYDERABAD

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ITA 1277/HYD/2017Status: DisposedITAT Hyderabad27 November 2019AY 2010-112 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the issue to the file of the AO with a direction to the assessee to provide necessary details for R&D expenditure. The AO is to verify and consider the allowability of the expenditure, ensuring a fair hearing.

What were the facts?

The assessee filed appeals against ex-parte orders of the CIT(A) for AY 2010-11. The R&D expenditure was disallowed by the AO due to lack of details.

What were the issues?

Whether the R&D expenditure was rightly disallowed due to lack of details and whether the ex-parte orders of the CIT(A) should be set aside.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘ B ‘ Bench, Hyderabad

Before: Smt. P. Madhavi Devi & Shri A. Mohan Alankamony

Hearing: 21/11/2019Pronounced: 27/11/2019

Per Smt. P. Madhavi Devi, J.M.

Both are assessee’s appeals for the A.Y 2010-11 against the order of the CIT (A)-5, Hyderabad, dated 31.12.2015 and 24.05.2017 respectively. ITA No.557/Hyd/2016 is against the assessment order passed u/s 143(3) of the Act and confirmed by the CIT (A); while ITA No.1277/Hyd/2017 is against the assessment order passed u/s 143(3) r.w.s. 263 of the I.T. Act.

2.

At the time of hearing, the learned Counsel for the assessee submitted that both the orders of the CIT (A) are ex- parte of the assessee for non-appearance of the assessee and not on merits. He, therefore, prayed that the issue may be set aside to the file of the CIT (A) or AO as the AO has disallowed the R&D expenditure for want of details and the assessee has the

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ITA Nos 557 of 2016 and 1277 of 2017 Deccan Health Care - Hyderabad.

necessary evidence in support of its R&D expenditure and the AO would have to verify the same.

3.

The learned DR was also heard.

4.

Having regard to the rival contentions and the material on record, we deem it fit and proper to set aside the issue to the file of the AO with a direction to the assessee to file the necessary details of R&D expenditure before the AO and the AO is directed to consider the allowability of such expenditure after verification of the same. Needless to mention that the assessee shall be given a fair opportunity of hearing.

5.

In the result, both the appeals of the assessee are treated as allowed for statistical purposes. Order pronounced in the Open Court on 27th November, 2019.

Sd/- Sd/- (A. MOHAN ALANKAMONY) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER

Hyderabad, dated 27th November, 2019. Vinodan/sps

Copy to:

1 Deccan Health Care P Ltd C/o P. Murali & Co. C.As, 6-3- 655/2/3, 1st Floor, Somajiguda, Hyderabad 500082 2 Dy. CIT, Circle 1(2) Hyderabad 3 CIT (A)-5 Hyderabad 4 Pr. CIT – 5 Hyderabad 5 The DR, ITAT Hyderabad 6 Guard File

By Order

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