DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 1, THANE, ASHAR IT PART, WAGLE INDUSTRIAL ESTATE, THANE WEST vs. MAHYCO MONSANTO BIOTECH (INDIA) PRIVATE LIMITED, SANDOZBAUGH SO THANE
Facts
The Revenue challenged the CIT(A)'s deletion of an addition of Rs. 7 Cr. (MVAT paid under protest) and upheld the disallowance of deductions under sections 80G and 35AC for CSR activities, and an addition related to Trait Fees. The assessee filed cross-objections contesting these additions and disallowances for the assessment year 2017-18.
Held
The Tribunal dismissed the Revenue's appeal, upholding the CIT(A)'s decision to allow the deduction for MVAT paid under protest under Section 43B. For the assessee's cross-objections regarding deductions under Section 80G and Section 35AC, and the addition of Trait Fees, the Tribunal set aside the CIT(A)'s order and remanded these issues back to the AO for fresh adjudication, allowing the assessee to furnish additional evidence.
Key Issues
1. Whether MVAT paid under protest is deductible under Section 43B of the Income Tax Act, 1961, given the liability might not be finalized. 2. Whether mandatory CSR expenditure qualifies for deduction under Section 80G or Section 35AC of the Income Tax Act, 1961. 3. Whether income from 'Trait Fees' not recognized in books due to uncertainty of recovery should be added to total income.
Sections Cited
Section 143(3) of Income Tax Act, 1961, Section 263 of Income Tax Act, 1961, Section 43B of Income Tax Act, 1961, Section 80G of Income Tax Act, 1961, Section 80G(1)(i) of Income Tax Act, 1961, Section 80G(2) of Income Tax Act, 1961, Section 80G(2)(a)(iv) of Income Tax Act, 1961, Section 80G(2)(a)(iiihk) of Income Tax Act, 1961, Section 80G(2)(a)(iiihl) of Income Tax Act, 1961, Section 35AC of Income Tax Act, 1961, Section 36(1)(vii) of Income Tax Act, 1961, Section 37(1) of Income Tax Act, 1961, Explanation 2 to Section 37(1) of Income Tax Act, 1961, Section 133(6) of Income Tax Act, 1961, Section 30 of Income Tax Act, 1961, Section 31 of Income Tax Act, 1961, Section 32 of Income Tax Act, 1961, Section 33 of Income Tax Act, 1961, Section 34 of Income Tax Act, 1961, Section 35 of Income Tax Act, 1961, Section 35CCD of Income Tax Act, 1961, Section 36 of Income Tax Act, 1961, Section 135 of Companies Act, 2013, Rule 29 of ITAT Rules, 1963, Order 41 Rule 27 of the Code of Civil Procedure, 1908
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “D”, MUMBAI
Before: SMT. BEENA PILLAI & SHRI PRABHASH SHANKAR
आदेश की प्रयियलयि अग्रेयिि/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT
22 ITA No.3325/M/2024 & CO No.154/M/2024 Mahyco Monsanto Biotech (India) Private Limited 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file.
सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER,
उि/सहािक िंजीकार (Dy./Asstt. Registrar) आिकर अिीलीि अयिकरण/ ITAT, Bench, Mumbai.
