CIT v. Cadila Healthcare

DCIT CENTRAL CIRCLE 8 2 MUMBAI, MUMBAI vs. ABHINAND VENTURES PRIVATE LIMITED, MUMBAI

Accordingly all these appeals of revenue are to be treated, as dismissed

Bench: Shri Pawan Singh, Jm & Shri Arun Khodpia, Am

…Life Sciences (P.) Ltd. v. DCIT [2022] 138 taxmann.com 297 (Bang) (Trib.)] 5) ITC v. ACIT [2024] 162 taxmann.com 734 (Col) (Trib.)] 6) ACIT v. Cadilla Healthcare Ltd [67 SOT 110 (Ahd.) (Trib.)] Abhinand Ventures Pvt. Ltd. 7) CIT v. Cadilla Healthcare Ltd (263 CTR 686) (Guj.) (HC) 8) PCIT v. Zydus Wellness Ltd [2017] 81 taxmann.com 159 (Guj.) (HC.)]” 22. In backing of the aforesaid submissions, it was the prayer by ld. AR that the expenditure by way of payment of Professional Fee to M/s Amarchand Mangaldas would squarely covered by the decision of Hon’ble Apex Court and other cases referred to supra, therefore…

DCIT CENTRAL CIRCLE 8 2 MUMBAI, MUMBAI vs. ABHINAND VENTURES PRIVATE LIMITED , MUMBAI

Accordingly all these appeals of revenue are to be treated, as dismissed

Bench: Shri Pawan Singh, Jm & Shri Arun Khodpia, Am

…Life Sciences (P.) Ltd. v. DCIT [2022] 138 taxmann.com 297 (Bang) (Trib.)] 5) ITC v. ACIT [2024] 162 taxmann.com 734 (Col) (Trib.)] 6) ACIT v. Cadilla Healthcare Ltd [67 SOT 110 (Ahd.) (Trib.)] Abhinand Ventures Pvt. Ltd. 7) CIT v. Cadilla Healthcare Ltd (263 CTR 686) (Guj.) (HC) 8) PCIT v. Zydus Wellness Ltd [2017] 81 taxmann.com 159 (Guj.) (HC.)]” 22. In backing of the aforesaid submissions, it was the prayer by ld. AR that the expenditure by way of payment of Professional Fee to M/s Amarchand Mangaldas would squarely covered by the decision of Hon’ble Apex Court and other cases referred to supra, therefore…

DCIT CENTRAL CIRCLE 8 2 MUMBAI, MUMBAI vs. ABHINAND VENTURES PRIVATE LIMITED, MUMBAI

Accordingly all these appeals of revenue are to be treated, as dismissed

Bench: Shri Pawan Singh, Jm & Shri Arun Khodpia, Am

…Life Sciences (P.) Ltd. v. DCIT [2022] 138 taxmann.com 297 (Bang) (Trib.)] 5) ITC v. ACIT [2024] 162 taxmann.com 734 (Col) (Trib.)] 6) ACIT v. Cadilla Healthcare Ltd [67 SOT 110 (Ahd.) (Trib.)] Abhinand Ventures Pvt. Ltd. 7) CIT v. Cadilla Healthcare Ltd (263 CTR 686) (Guj.) (HC) 8) PCIT v. Zydus Wellness Ltd [2017] 81 taxmann.com 159 (Guj.) (HC.)]” 22. In backing of the aforesaid submissions, it was the prayer by ld. AR that the expenditure by way of payment of Professional Fee to M/s Amarchand Mangaldas would squarely covered by the decision of Hon’ble Apex Court and other cases referred to supra, therefore…

DCIT CENTRAL CIRCLE 8 2 MUMBAI, MUMBAI vs. ABHINAND VENTURES PRIVATE LIMITED , MUMBAI

Accordingly all these appeals of revenue are to be treated, as dismissed

Bench: Shri Pawan Singh, Jm & Shri Arun Khodpia, Am

…Life Sciences (P.) Ltd. v. DCIT [2022] 138 taxmann.com 297 (Bang) (Trib.)] 5) ITC v. ACIT [2024] 162 taxmann.com 734 (Col) (Trib.)] 6) ACIT v. Cadilla Healthcare Ltd [67 SOT 110 (Ahd.) (Trib.)] Abhinand Ventures Pvt. Ltd. 7) CIT v. Cadilla Healthcare Ltd (263 CTR 686) (Guj.) (HC) 8) PCIT v. Zydus Wellness Ltd [2017] 81 taxmann.com 159 (Guj.) (HC.)]” 22. In backing of the aforesaid submissions, it was the prayer by ld. AR that the expenditure by way of payment of Professional Fee to M/s Amarchand Mangaldas would squarely covered by the decision of Hon’ble Apex Court and other cases referred to supra, therefore…

DCIT, MUMBAI vs. ABHINAND VENTURES PRIVATE LIMITED , MUMBAI

Accordingly all these appeals of revenue are to be treated, as dismissed

Bench: Shri Pawan Singh, Jm & Shri Arun Khodpia, Am

…Life Sciences (P.) Ltd. v. DCIT [2022] 138 taxmann.com 297 (Bang) (Trib.)] 5) ITC v. ACIT [2024] 162 taxmann.com 734 (Col) (Trib.)] 6) ACIT v. Cadilla Healthcare Ltd [67 SOT 110 (Ahd.) (Trib.)] Abhinand Ventures Pvt. Ltd. 7) CIT v. Cadilla Healthcare Ltd (263 CTR 686) (Guj.) (HC) 8) PCIT v. Zydus Wellness Ltd [2017] 81 taxmann.com 159 (Guj.) (HC.)]” 22. In backing of the aforesaid submissions, it was the prayer by ld. AR that the expenditure by way of payment of Professional Fee to M/s Amarchand Mangaldas would squarely covered by the decision of Hon’ble Apex Court and other cases referred to supra, therefore…

MARKSANS PHARMA LTD,MUMBAI vs. CIT (APPEALS), NFAC, MUMBAI

In the result, the appeal by the assessee is allowed

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhail

…aforesaid expenditure of Rs. 212.85 lakh, was incurred in respect of bio- equivalence study for the drugs and pharmaceutical formulations manufactured/traded by the assessee. We find that the Hon’ble Gujarat High Court in CIT v/s Cadila Healthcare Ltd, (2013) 263 CTR 686 (Guj.) held that the benefit under section 35(2AB) of the Act is also available in respect of expenditure on clinical trials outside the approved in-house R&D facility. The relevant findings of the Hon’ble High Court, in the aforesaid decision, are reproduced as under:- “11.Revenue has also suggested following question : "D. Whether the Appellat…

USV P. LTD.,MUMBAI vs. DY CIT-C-5(2), MUMBAI

In the result, appeal filed by the assessee and appeal filed by the revenue are partly allowed

Bench: Shri S. Rifaur Rahman, Hon'Ble & Ms. Kavitha Rajagopal, Hon’Blem/S. Usv Private Limited V. Dcit, Central Circle- 5(2) Arvind Vitthal Gandhi Chowk 1908, 19Th Floor Govandi (East), Mumbai- 400088 Air India Building Nariman Point, Mumbai- 400021 Pan: Aaacu1366N (Appellant) (Respondent) Dcit, Central Circle- 5(2) V. M/S. Usv Private Limited 1908, 19Th Floor Arvind Vitthal Gandhi Chowk Air India Building, Nariman Point Govandi (East), Mumbai- 400088 Mumbai- 400021 Pan: Aaacu1366N

…ng which is held against the Assessee by DSIR. It is akin to the view of the DSIR on clinical trials which take place outside the R&D facility. However, this view of DSIR is not found to be legally tenable by the Gujarat High Court in CIT v. Cadila Healthcare 263 CTR 686 wherein it is held that expenses Page No. | 24 ITA NO. 891 & 2573/MUM/2021 (A.Y: 2018-19) M/s. USV Private Limited incurred on clinical trials outside the R & D facility is also eligible for weighted deduction u/s 35(2AB). Same reasoning also applies to testing charges. Ld. AR of the assessee relied on the decision of the Hon'ble Gujarat High C…

DCIT -CC-5(2) , MUMBAI vs. M/S. USV PVT. LTD, MUMBAI

Accordingly, respectfully following the above decisions of the Tribunal we refrain to interfere with the order passed by the CIT(A) on this issue. Ground No. 8 raised by the Revenue is, therefore, ...

…e AO following the order of the Tribunal. 3.2. Before us, the Ld. Counsel for the assessee stated that now this issue has been decided in favour of the assessee and against the revenue by the Hon‘ble Gujarat High Court in the case of CIT Vs Cadila Healthcare 263 CTR 686. The decision of the Tribunal for A.Y. 2007-08 is dt. 4.7.2012 and the decision of the Hon‘ble Gujarat High Assessment Year: 2014-15 & 2015-16 Court is dt. 20.3.2013. Thus it is clear that the decision of the Hon‘ble Gujarat High Court was not before the Tribunal when it was deciding this issue. The Hon‘ble High Court explained the explanation to…

ASHISH LIFE SCIENCE P. LTD.,MUMBAI vs. ASST. CIT-CIRCLE-9(1)(2), MUMBAI

In the result, the appeal filed by the assessee is hereby allowed

Bench: Shri Amarjit Singh, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No. 964/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2017-18) Ashish Life Science Pvt. Ltd. बिधम/ Acit-Cir, 9(1)(2) 210, 2Nd Floor, Aayakar 213, Laxmi Plaza Industrial Vs. Estate, New Link Road, Bhavan, M. K. Road, Andheri, Mumbai-400053. Mumbai-400020. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabcb4093N (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Dhaval Shah Revenue By: Shri K.P.R.R. Murty सुनवाई की तारीख / Date Of Hearing: 22/03/2022 घोषणा की तारीख /Date Of Pronouncement: 26/04/2022 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 15.04.2021 Passed By The National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As The “(Nfac)”] In The Relevant A.Y.2017-18. 2. The Assessee Has Raised The Following Grounds: - “1. The Ld. Cit(A) Has Erred In Law & In Facts In Passing The Order U/S. 250 Of The Act Through National Faceless Appeal Center Which Is Bad In Law & Invalid. 2. The Ld. Cit(A) Has Erred In Law & In Facts Confirming The Assessment Order Passed U/S. 143(3) Of The Act Without. Considering The Written Submissions Filed By The Appellant. As Such, The Order Is

…these points have to be considered judiciously and dispassionately from the view- point of a reasonable and honest person in business without any bias of any kind......" 5.3.We find that in the cases of Panacea Biotech Ltd. (supra)and Cadila Healthcare Ltd (263 CTR 686) the Hon'ble Delhi High Court and the Hon'ble Gujarat High Court has clearly held that PRE had to be allowed as revenue expenditure. We are reproducing the relevant portion of judgment of Cadila Healthcare Ltd. and it reads as follow: "9. With respect to the expenditure incurred for production registration charges, we agree with the view of the…

DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE -5(1), MUMBAI vs. USV LIMITED , MUMBAI

In the result, the appeal filed by the Revenue is dismissed

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2010-11

…vide order dated 28.02.2015 had held that expenses incurred on clinical trial, patent filing fees and foreign consultancy are eligible for weighted deduction u/s 35(2AB) of the Act. Also the Hon’ble Gujarat High Court in the case of CIT v. Cadila Healthcare (263 CTR 686) (Guj) has held that the taxpayer was eligible for weighted deduction of clinical trials conducted outside the facility because by its very nature, clinical trials cannot be ITA No. 4845/M/2017 & Ors 38 M/s USV Private Limited conducted inside the approved R&D facility. Furthermore, denial of deduction will result in diluting the benefit envisage…

DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE -5(1), MUMBAI vs. USV LIMITED , MUMBAI

In the result, the appeal filed by the Revenue is dismissed

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2010-11

…vide order dated 28.02.2015 had held that expenses incurred on clinical trial, patent filing fees and foreign consultancy are eligible for weighted deduction u/s 35(2AB) of the Act. Also the Hon’ble Gujarat High Court in the case of CIT v. Cadila Healthcare (263 CTR 686) (Guj) has held that the taxpayer was eligible for weighted deduction of clinical trials conducted outside the facility because by its very nature, clinical trials cannot be ITA No. 4845/M/2017 & Ors 38 M/s USV Private Limited conducted inside the approved R&D facility. Furthermore, denial of deduction will result in diluting the benefit envisage…

DEPUTY COMMISSIONER OF INCOME TAX-13(2)(2), MUMBAI vs. SHARDA CROP CHEM PRIVATE LIMITED , MUMBAI

The appeal of the revenue is dismissed

Bench: Shri G.S. Pannu & Shri Ravish Sood, Jm

…2) Vs M/s Sharda Crop. Chem Pvt. Ltd. judiciously and dispassionately from the view-point of a reasonable and honest person in business without any bias of any kind......" 5.3.We find that in the cases of Panacea Biotech Ltd. (supra)and Cadila Healthcare Ltd (263 CTR 686) the Hon'ble Delhi High Court and the Hon'ble Gujarat High Court has clearly held that PRE had to be allowed as revenue expenditure. We are reproducing the relevant portion of judgment of Cadila Healthcare Ltd. and it reads as follow: "9. With respect to the expenditure incurred for production registration charges, we agree with the view of the T…

DCIT 13(2)(2), MUMBAI vs. SHARDA WORLDWIDE EXPORTS P. LTD, MUMBAI

…आयकर अपीलीय अिधकरण, , , , मुंबई आयकर अपीलीय अिधकरण मुंबई “एफ एफ” ” ” ” खंडपीठ खंडपीठ आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई मुंबई एफ एफ खंडपीठ खंडपीठ Income-tax Appellate Tribunal “F”Bench Mumbai एवं रिवश सूद रिवश सूद रिवश सूद, "याियक रिवश सूद सव"ी सव"ी राजे"" राजे"", लेखा लेखा सद"य सद"य एवं "याियक सद"य सद"य सव"ी सव"ी राजे"" राजे"" लेखा लेखा सद"य सद"य एवं एवं "याियक "याियक सद"य सद"य Before S/Sh. Rajendra,Accountant Member & Ravish Sood, Judicial Member आयकर अपील अपील संसंसंसं./I.T.A./3804/Mum/2016, िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2011-12 आयकर आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" आयकर अपील…