GHARDA CHEMICALS LTD,MUMBAI vs. ADDL CIT CIR 9(1), MUMBAI

Order u/s.254(1)of the Income-tax Act,1961(Act) लेखा सद� राजे� के अनुसार PER RAJENDRA, AM- Challenging the orders of the Cs.IT(A)the Assessing Officer (AO)and the assessee have filed the appeals/cross objections for the above mentioned assessment years(AY.s.),raising various grounds of appeal.Assessee-company,engaged in the business of manufacture and sale of pesti-cides,insecticides, weedicides,veterinary-drugs and polymers.The details of filing of returns,returned incomes,assessed incomes etc.can be summarised as under: A.Y. ROI filed on Returned Assessment dt. Assessed Dt. of orders Income(Rs.) Income(Rs.) of CIT(A) 2006-07 29.11.2006 74,78,62,086/- 29.12.2008 160,49,85,410/- 13.01.2011 2008-09 31.10.2008 34,46,96,081/- 30.11.2010 81,06,19,820/- 28.06.2011 ITA/1375/Mum/2011,AY.2006-07: 2.The only ground of appeal is not allowing additional deduction of 50% (i.e 150% -100%) under section 35(2AB)(1) of the Act in respect of the expenditure of Rs. 15.57 crores incurred on in-house research and development activity carried out its Dombivili R&D facility. While deciding the appeals for the AY.s.2004-05 and 2005-06(ITA/5474/Mum/2009& ITA /5348/Mum/2009and ITA/8376/Mum/2010& ITA/8758/Mum/2010),we have sent back the matter to the file of the AO for fresh adjudication.Following the same,Ground no.1 is decided in favour of the assessee,in part.

1375/11-(3+1C.O.)Gharda Chemicals ITA/2321/Mum/2011,AY.2006-07: 3.First ground deals with deletion of disallowance of interest amounting to Rs.19.94 crores., u/s.36(1)(iii)of the Act.While deciding the appeals for the AY.s.2004-05 and 2005-06 (supra), we have decided the issue against the AO.Following the same,ground no.1 is dismissed. 4.Next ground of appeal is about deleting the addition of Rs.23.20 crores on account of unutilised modvat credit.We have restored back the issue to the file of the AO for fresh adjudication.He is directed to decide the issue as per the directions given in the order for the AY.2003-04.Ground no.2 is decided in favour of the AO,in part. 5.Next ground deals with deleting the addition of Rs. 27.54 crores on account of excise duty on closing stock.As the issue is directly related with the earlier issue,so,same is also restored back to the file of the AO,who would decide it after hearing the assessee.Ground no.3 is partly allowed. 6.Last ground (GOA-5)pertains to deletion of addition of Rs.66 Crores made u/s.2(22)(e)of the Act.Following our order for the AY.s.2005-05(supra),ground no.5 is dismissed. ITA/6588/Mum/2001-AY.2008-09: 7.The solitary ground raised by the assessee is about deleting the addition of Rs.3.95 Crores on account of excess depreciation on intangible assets.We have decided the issue while adjudicating the appeal for the earlier years(supra).Following the same,we dismiss the ground raised by the AO. C.O/.No.139/M/2012,AY.2008-09: 8.During the course of hearing before us,the AR of the assesse did not press ground no.1. Hence,same stands dismissed as not pressed. 9.Second ground as about not mentioning the correct figure of depreciation with regard to the IPR.Before us,it was stated that the FAA had wrongly mentioned the figure of Rs.3,69,36,681 /- as against the correct amount of Rs.3,95,51,615/-.We are directing the AO verify the figure and take the correct figure.Ground no.2 is partly allowed. As a result, appeals filed by the assessee and the AO for the AY.06-07 are partly allowed. Appeal of the AO for the AY.2008-09 stand dismissed and CO for that year is partly allowed. फलतः िनधा�रती और िनधा�रती अिधकारी �ारा िन.व. 2006-07 के िलए दािखल क� गई अपील� आंिशक �प से मंजूर क� जाती ह�.िनधा�रती अिधकारी क� िन.व. 2008-09 क� अपील नामंजूर क� जाती है एवं िनधा�रती �ारा िन.व. 2008-09 दािखल ��या गया ��या�ेप आंिशक �प से मंजूर �कया जाता है. Order pronounced in the open court on 29th April, 2016. आदेश क� घोषणा खुले �यायालय म� �दनांक 29 अ�ैल , 2016 को क� गई । Sd/- Sd/- (सी. एन. �साद / C.N. Prasad ) (राजे�� / Rajendra) �याियक सद�य / JUDICIAL MEMBER लेखा लेखा लेखा सद�य लेखा सद�य सद�य / ACCOUNTANT MEMBER सद�य मुंबई Mumbai; �दनांकDated : 29.04.2016. Jv.Sr.PS. आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order forwarded to : आदेश आदेश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत 2