DCIT v. Sun Pharmaceutical Ind Ltd.

Addl CIT Ltu, Mumbai vs. Bajaj Holding & Investment Ltd ( Foremerly Known As Bajaj Auto Ltd), Mumbai

In the result, appeal filed by the revenue is dismissed and appeal filed by the assessee stands partly allowed as indicated hereinabove

Bench: Smt. Beena Pillai () & Shri Renu Jauhri ()

…ng decisions of Hon'ble Supreme Court, High Courts and ITAT on merits in favour of the assessee:- ITA No. 5510 & 5652/Mum/2012; 24 A.Y. 2007-08 Bajaj Holding & Investment Ltd. (Formerly Known as Bajaj Auto Ltd.) i) DCIT vs. Sun Pharmaceutical Ind. Ltd [2010] 329 ITR 479 (Guj) ii) DCIT vs. Sun Pharmaceutical Ind. Ltd [2010] 325 ITR (SC) iii) United Phosphorous Ltd. vrs. ACIT(2015) 230 Taxman 596 (Guj) iv) VIS. JCIT (ITA No. Lupin Ltd. 5088/Mum/2005) 50. On the other hand, Ld. DR relied on the orders passed by revenue authorities, however he conceded that this ground is covered by the decision of Hon'ble Apex Cour…

Dy.CIT, Circle -7(1) (1), Mumbai vs. M/S. National Stopck Exchange of India Ltd, Mumbai

Bench: Shri Saktijit Dey, Hon’Ble & Shri Girish Agrawal

…alt by Coordinate Bench of ITAT in assessee's own case in past several years, whereby the matter has been restored to the file of ld. Assessing Officer for deciding it in light of decision of Hon'ble Gujarat High Court in the case of Sun Pharmaceuticals Ltd., 329 ITR 479 (Guj). 6. 2. Fact of the matter is that assessee had capitalized lease hold land and reported it as asset in its balance sheet and at the same time claimed amortization on the amount so capitalized. In the order of Coordinate Bench of ITAT for Assessment Year 2008-09, in ITA No.1739/Mum/2013, dated 16.10.2019, a reference is made of the decisio…

National Stock Exchange of India Limited, Mumbai vs. Deputy Commissioner of Income Tax, Mumbai

Bench: Shri Saktijit Dey, Hon’Ble & Shri Girish Agrawal

…alt by Coordinate Bench of ITAT in assessee's own case in past several years, whereby the matter has been restored to the file of ld. Assessing Officer for deciding it in light of decision of Hon'ble Gujarat High Court in the case of Sun Pharmaceuticals Ltd., 329 ITR 479 (Guj). 6. 2. Fact of the matter is that assessee had capitalized lease hold land and reported it as asset in its balance sheet and at the same time claimed amortization on the amount so capitalized. In the order of Coordinate Bench of ITAT for Assessment Year 2008-09, in ITA No.1739/Mum/2013, dated 16.10.2019, a reference is made of the decisio…

National Stock Exchange of India Limited, Mumbai vs. Dy Commissioner of Income Tax -Circle 7(1)(1), Mumbai

Bench: Shri Saktijit Dey, Hon’Ble & Shri Girish Agrawal

…alt by Coordinate Bench of ITAT in assessee's own case in past several years, whereby the matter has been restored to the file of ld. Assessing Officer for deciding it in light of decision of Hon'ble Gujarat High Court in the case of Sun Pharmaceuticals Ltd., 329 ITR 479 (Guj). 6. 2. Fact of the matter is that assessee had capitalized lease hold land and reported it as asset in its balance sheet and at the same time claimed amortization on the amount so capitalized. In the order of Coordinate Bench of ITAT for Assessment Year 2008-09, in ITA No.1739/Mum/2013, dated 16.10.2019, a reference is made of the decisio…

National Stock Exchange of India Limited, Mumbai vs. Dy Commissioner of Income Tax -Circle 7(1)(1), Mumbai

In the result, all the five appeals of the assessee are partly allowed and the appeal of the Revenue is dismissed

Bench: Shri Saktijit Dey, Hon’Ble & Shri Girish Agrawalassessment Year: 2006-07

…alt by Coordinate Bench of ITAT in assessee’s own case in past several years, whereby the matter has been restored to the file of ld. Assessing Officer for deciding it in light of decision of Hon'ble Gujarat High Court in the case of Sun Pharmaceuticals Ltd., 329 ITR 479 (Guj). 6.2. Fact of the matter is that assessee had capitalized lease hold land and reported it as asset in its balance sheet and at the same time claimed amortization on the amount so capitalized. In the order of Coordinate Bench of ITAT for Assessment Year 2008-09, in ITA No.1739/Mum/2013, dated 16.10.2019, a reference is made of the decision…

National Stock Exchange of India Ltd, Mumbai vs. DCIT -Circle 7(1) (1), Mumbai

Bench: Shri Saktijit Dey, Hon’Ble & Shri Girish Agrawal

…alt by Coordinate Bench of ITAT in assessee's own case in past several years, whereby the matter has been restored to the file of ld. Assessing Officer for deciding it in light of decision of Hon'ble Gujarat High Court in the case of Sun Pharmaceuticals Ltd., 329 ITR 479 (Guj). 6. 2. Fact of the matter is that assessee had capitalized lease hold land and reported it as asset in its balance sheet and at the same time claimed amortization on the amount so capitalized. In the order of Coordinate Bench of ITAT for Assessment Year 2008-09, in ITA No.1739/Mum/2013, dated 16.10.2019, a reference is made of the decisio…

National Stock Exchange of India Ltd, Mumbai vs. Dy CIT -Circle 7(1) (1), Mumbai

Bench: Shri Saktijit Dey, Hon’Ble & Shri Girish Agrawal

…alt by Coordinate Bench of ITAT in assessee's own case in past several years, whereby the matter has been restored to the file of ld. Assessing Officer for deciding it in light of decision of Hon'ble Gujarat High Court in the case of Sun Pharmaceuticals Ltd., 329 ITR 479 (Guj). 6. 2. Fact of the matter is that assessee had capitalized lease hold land and reported it as asset in its balance sheet and at the same time claimed amortization on the amount so capitalized. In the order of Coordinate Bench of ITAT for Assessment Year 2008-09, in ITA No.1739/Mum/2013, dated 16.10.2019, a reference is made of the decisio…

Bajaj Holdings & Investment Ltd ( Formerly Bajaj Auto Ltd), Mumbai vs. ACIT Ltu, Mumbai

…sistently allowed deduction of proportionate amount of lease premium written off during the relevant previous year as a revenue expenditure by following the judgment of Hon’ble Gujarat High Court in the case of DCIT Vs. Sun Pharmaceutical Ind. Ltd. [2010] 329 ITR 479. We note that in paragraph 50 of the Common Order, dated 20/01/2021 [passed in ITA No. 3144 & 3493/Mum/1999 pertaining to Assessment Year 1995-96], the Tribunal has recorded that the Revenue concedes that ‘this ground is covered by the decision of Hon’ble Apex Court, High Courts & ITAT’. The aforesaid decision of the Tribunal was followed i…

Bajaj Holdings & Investments Ltd ( Formerly Known As Bajaj Auto Ltd), Mumbai vs. Addl CIT RG 3(1), Mumbai

The appeals are partly allowed

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

…consistently allowed deduction of proportionate amount of lease premium written off during the relevant previous year as a revenue expenditure by following the judgment of Hon’ble Gujarat High Court in the case of DCIT Vs. Sun Pharmaceutical Ind. Ltd. [2010] 329 ITR 479. We note that in paragraph 50 of the Common Order, dated 20/01/2021 [passed in ITA No. 3144 & 3493/Mum/1999 pertaining to Assessment Year 1995-96], the Tribunal has recorded that the Revenue concedes that ‘this ground is covered by the decision of Hon’ble Apex Court, High Courts & ITAT’. The aforesaid decision of the Tribunal was followed in appe…

DCIT RG. - 3(1), Mumbai vs. M/S. Bajaj Auto Ltd., Mumbai

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

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Bajaj Auto Limited V. Dcit – Range – 3(1) Bajaj Bhavan, 226-Nariman Point 6Th Floor, Aayakar Bhavan Mumbai – 400021 M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Dcit – Range – 3(1) V. M/S. Bajaj Auto Limited Room No. 623, 6Th Floor Bajaj Bhavan, 226-Nariman Point Mumbai – 400021 Aayakar Bhavan M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Assessee Represented By : Ms. Vasanti Patel& Shri Kirit Kamdar Department Represented By : Shri Ankush Kapoor

…T. 51. Considered the rival submission and material placed on record. We notice from the records that the identical issues have already been decided by the Hon’ble Supreme Court, High Courts and ITAT on merits:- (i) DCIT vs. Sun Pharmaceutical Ind. Ltd [2010] 329 ITR 479 (Guj) (ii) DCIT vs. Sun Pharmaceutical Ind. Ltd [2010] 325 ITR (SC) (iii) United Phosphorous Ltd. vrs. ACIT(2015) 230 Taxman 596 (Guj) (iv) Lupin Ltd. vrs. JCIT (ITA No. 5088/Mum/2005) For the sake of clarity, relevant portion of the decision in the case of Lupin Ltd is reproduced below:- 7. Ground nos. 5 and 6 relates to the disallowance of amor…

M/S. Bajaj Auto Ltd., Mumbai vs. DCIT RG. - 3(1), Mumbai

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

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Bajaj Auto Limited V. Dcit – Range – 3(1) Bajaj Bhavan, 226-Nariman Point 6Th Floor, Aayakar Bhavan Mumbai – 400021 M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Dcit – Range – 3(1) V. M/S. Bajaj Auto Limited Room No. 623, 6Th Floor Bajaj Bhavan, 226-Nariman Point Mumbai – 400021 Aayakar Bhavan M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Assessee Represented By : Ms. Vasanti Patel& Shri Kirit Kamdar Department Represented By : Shri Ankush Kapoor

…T. 51. Considered the rival submission and material placed on record. We notice from the records that the identical issues have already been decided by the Hon’ble Supreme Court, High Courts and ITAT on merits:- (i) DCIT vs. Sun Pharmaceutical Ind. Ltd [2010] 329 ITR 479 (Guj) (ii) DCIT vs. Sun Pharmaceutical Ind. Ltd [2010] 325 ITR (SC) (iii) United Phosphorous Ltd. vrs. ACIT(2015) 230 Taxman 596 (Guj) (iv) Lupin Ltd. vrs. JCIT (ITA No. 5088/Mum/2005) For the sake of clarity, relevant portion of the decision in the case of Lupin Ltd is reproduced below:- 7. Ground nos. 5 and 6 relates to the disallowance of amor…

Indianoil Adani Ventures Limited (Formerly Known As "Indian Oiltanking Limited"), Mumbai vs. ITO - 10(3)(3), Mumbai

In the result, the appeals of the assessee in I

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

…, the ld. Counsel for the assessee has submitted that although a similar issue has been decided by the Tribunal against the assessee in A.Y. 1999- 2000, the decision of Hon’ble Gujarat High Court in the case of Sun Pharmaceuticals Ind. Ltd. reported in (2010) 329 ITR 479 rendered subsequently on a similar issue is in favour of the assessee. A perusal of the judgment passed by the Hon’ble Gujarat High Court in the said case shows that the Tribunal in that case had found on analysis of the relevant lease agreement that the land in question was not acquired by the assessee. The lease Deed was registered because as p…

National Stock Exchange of India Ltd, Mumbai vs. DCIT, Cir-7(1)(1), Mumbai

In the result ground no.1 of the appeal of the assessee is allowed and grounds no

Bench: Shri Aby T Varkey & Shri Amarjit Singhita Nos.730 & 731/Mum/2023 (A.Ys. 2016-17 & 2017-18) National Stock Exchange Vs. Dcit, Circle 7(1)(1) Of India Limited Room No. 126, 1 St Floor, Exchange Plaza, Bandra Aaykar Bhavan, Kurla Complex, Bandra M.K. Road, East, Mumbai – 400051 Churchgate -400 020 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aaacn1797L Appellant .. Respondent

…was restored to the file of the AO for deciding a fresh in the light of the decision of Hon’ble Gujarat High Court in the case of Sun P a g e | 35 ITA Nos. 730 & 731/Mum/2023 National Stock Exchange of India Ltd. Vs. DCIT, Circle 7(1)(1) Pharmaceuticals Ltd. 329 ITR 479 (Guj). The relevant extract of the decision of the ITAT is reproduced as under: ―3.1. We have heard the rival submissions. We find that similar issue was subject matter of adjudication by this tribunal in the case of IOT Infrastructure & Energy Services Ltd (formerly Indian Oil Tanking Limited) in ITA Nos. 1901 & 2585/Mum/2009 for Asst Year 2004…

The Dy CIT RG 3(1), Mumbai vs. M/S. Bajaj International P. Ltd, Mumbai

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

Bench: Shri B.R. Baskaran (Am) & Shri Rahul Chaudhary (Jm)

…ease premium paid for leasehold land written off. This is a recurring issue. The Tribunal had deleted this disallowance in AY 1995-96 by following the decision rendered by Hon’ble Gujarat High Court in the case of DCIT vs. Sun Pharmaceuticals Ind. Ltd. (2010)(329 ITR 479)(Guj) and other two decisions. The above said decision was followed in AY 1996-97 and 1998-99. Accordingly, consistent 17 M/s. Bajaj Auto Ltd. with the view taken by the co-ordinate benches in the assessee’s own case in the earlier years, we hold that the Ld CIT(A) was justified in deleting this disallowance. 28.0 Ground no.15 raised by the re…

DCIT 7(3), Mumbai vs. Wyeth Ltd ( Formerly Known As Wyeth Lederle Ltd), Mumbai

In the result, appeal filed by the revenue is dismissed

Bench: Shri Vikas Awasthy, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blepfizer Limited V. Acit- Special Range 23 (Earlier Known As Wyeth Lederle Limited) [Now The Dcit-Circle 7(3)] The Capital, G-Block Aayakar Bhavan Bandra Kurla Complex Mumbai- 400020 Bandra (E), Mumbai -400012 Pan: Aaacp3334M (Appellant) (Respondent) Acit- Ltu V. M/S. Wyeth Limited 28Th Floor, Centre - 1 (Formerly Known As Wyeth Lederle Ltd) Rbc Mahindra Towers World Trade Centre 4Th Floor, A- Wing Cuffe Parade, Mumbai Dr G.M. Bhosale Road Worli, Mumbai- 400055 Pan: Aaacw2641Q (Appellant) (Respondent) Assessee Represented By : Shri Vishal Kalra Department Represented By : Smt. Sujatha Iyangar

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H”, MUMBAI BEFORE SHRI VIKAS AWASTHY, HON’BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER Pfizer Limited v. ACIT- Special Range 23 (Earlier known as Wyeth Lederle Limited) [Now the DCIT-Circle 7(3)] The Capital, G-Block Aayakar Bhavan Bandra Kurla Complex Mumbai- 400020 Bandra (E), Mumbai -400012 PAN: AAACP3334M (Appellant) (Respondent) ACIT- LTU v. M/s. Wyeth Limited 28th Floor, Centre - 1 (Formerly known as wyeth Lederle Ltd) RBC Mahindra Towers World Trade Centre 4th Floor, A- Wing Cuffe Parade, Mumbai Dr G.M. Bhosale Road Worli, Mumb…

ACIT (Ltu-1), Mumbai vs. Bajaj Holdings & Investment Ltd, Mumbai

In the result, cross objection filed by the assessee is partly allowed

Bench: Shri Kuldip Singh, Hon’Ble & Shri S. Rifaur Rahman, Hon'Bleacit (Ltu-1) V. Bajaj Holdings Investment Ltd 29Th, Floor, Centre-1 226, Bajaj Bhavan, 2Nd Floor World Trade Centre Jamnalal Bajaj Marg, Nariman Point Mumbai- 400021 Cuffe Parade, Mumbai- 400075 Pan: Aaacb3370K (Appellant) (Respondent) C.O.No. 96/Mum/2002 [Arising Out Of Ita No.5030/Mum/2001 (A.Y: 1997-98)] Bhajaj Auto Limited V. Acit (Ltu-1) Bhajaj Bhavan 29Th, Floor, Centre-1 Nariman Point World Trade Centre Mumbai - 400020 Cuffe Parade, Mumbai- 400075 Pan: Aaacb3370K (Appellant) (Respondent) Assessee Represented By : Shri Percy Pardiwala& Ms. Vasanti Patel Department Represented By : Shri Rahul Kumar & Shri Vranda U Matkarri

…to the payment on account of lease hold of land and building. This issue as rightly been pointed out by the learned counsel is covered by the decision of the Hon'ble High Court of Gujarat in the case of DCIT vs. Sun Pharmaceuticals Industries Ltd. reported in 329 ITR 479, wherein the Hon'ble High Court has held that the payment of advance lease rent for acquisition of land on lease for a period of 19 years is revenue expenditure. While coming to this conclusion the Hon'ble High Court has relied upon the principle and ratio laid down by the Hon'ble Supreme Court in the case of CIT vs. Madras Auto Services Ltd. (19…