Zandu Pharmaceuticals Works Ltd. v. CIT

350 ITR 366High Court2013#1675 most cited

What is Zandu Pharmaceuticals Works Ltd. v. CIT authority for?

Expenses, including scientific research or head office expenses, cannot be allocated to units eligible for deductions under sections 80IB or 80IC unless there is a clear nexus between the expenditure and the specific eligible unit for computing the deduction.

68

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2016 to 2026.

Also referred to as

Zandu Pharmaceuticals Works Ltd. v. CIT · section 80IB deduction · section 80IC deduction · allocation of expenses · scientific research expenses · R&D expenditure · nexus with eligible unit · head office expenses · computation of deduction · 350 ITR 366

Also reported as

259 CTR 253

Sections most often in play

Section 80ICSection 80IBSection 92CASection 143(3)Section 115JBSection 144C(3)Section 14ASection 35(2AB)

Issues it is cited on

section 92ba(i)r&d expendituresection 35(1)(iv)section 80ieexport oriented unitsection 100section 6(1)profit split methodbright line testsection 35(2ab)resale price methodsection 36(l)(va)

Judgments citing Zandu Pharmaceuticals Works Ltd. v. CIT

ACIT -3(1)(2), Mumbai vs. Hikal Ltd., Mumbai

In the result, the In the result, the appeal of Revenue for assessment year 2010

ITA 2320/MUM/2016[2010-11]Status: DisposedITAT Mumbai28 Dec 2022AY 2010-11

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2010-11 & Assessment Year: 2011-12 Acit-3(1)(2), Hikal Ltd., Room No. 607, 6Th Floor, 717/718, Maker Chambers V, Aayakar Bhavan, Vs. Nariman Point, Mumbai-400020. Mumbai-400021. Pan No. Aaach 0383 A Appellant Respondent : Revenue By Mr. Sanjay Vishwas Rao Deshmukh, Cit-Dr/ Mr. R.N. D’Souza, Dr Assessee By : Mr. Sanjay Parikh, Ar : Date Of Hearing 02/11/2022 Date Of Pronouncement : 28/12/2022

For Appellant: Mr. Sanjay Parikh, ARFor Respondent: Revenue by Mr. Sanjay Vishwas Rao
Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAHUL CHAUDHARY (JUDICIAL MEMBER) Assessment Year: 2010-11 & Assessment Year: 2011-12 ACIT-3(1)(2), Hikal Ltd., Room No. 607, 6th floor, 717/718, Maker Chambers V, Aayakar Bhavan, Vs. Nariman Point, Mumbai-400020. Mumbai-400021. PAN No. AAACH 0383 A Appellant Respondent : Revenue by Mr. Sanjay Vishwas Rao Deshmukh, CIT-DR/ Mr. R.N. D’Souza, DR Assessee by : Mr. Sanjay Parikh, AR : Date of Hearing 02/11/2022 Date of pronouncement : 28/12/2022 ORDER PER OM PRAKASH KANT, AM These two appeals by th…

DCIT, Circle- 7(1), New Delhi vs. Dabur India Ltd., New Delhi

In the result, all these appeals are allowed for statistical purposes

ITA 183/DEL/2018[2011-12]Status: DisposedITAT Delhi20 Sept 2022AY 2011-12
For Appellant: Shri Rohit Jain, AdvocateFor Respondent: Shri Mahesh Shah, CIT DR
Section 801BSection 92C

…Del./2017 ITA No.7253/Del./2017 ITA No.7431 /Del./2017 ITA No.183/Del./2018 no nexus with the units eligible for deduction has not been controverted by the Revenue. We find, the Hon’ble Bombay High Court in the case of Zandu Pharmaceuticals Works Ltd. vs CIT, 350 ITR 366 (Bom) has held that once the expenses have no nexus with the units eligible for deduction, such expenses cannot he allocated to units for the purpose of computing deduction u/s 80IB/80IC of the Act. Since the scientific research expenses of Rs 651 lakhs which were included in the head office expenses allocated by the AO are not connected with the…

DCIT, Circle-7(1), New Delhi vs. Dabur India Ltd., New Delhi

In the result, all these appeals are allowed for statistical purposes

ITA 7431/DEL/2017[2010-11]Status: DisposedITAT Delhi20 Sept 2022AY 2010-11
For Appellant: Shri Rohit Jain, AdvocateFor Respondent: Shri Mahesh Shah, CIT DR
Section 801BSection 92C

…Del./2017 ITA No.7253/Del./2017 ITA No.7431 /Del./2017 ITA No.183/Del./2018 no nexus with the units eligible for deduction has not been controverted by the Revenue. We find, the Hon’ble Bombay High Court in the case of Zandu Pharmaceuticals Works Ltd. vs CIT, 350 ITR 366 (Bom) has held that once the expenses have no nexus with the units eligible for deduction, such expenses cannot he allocated to units for the purpose of computing deduction u/s 80IB/80IC of the Act. Since the scientific research expenses of Rs 651 lakhs which were included in the head office expenses allocated by the AO are not connected with the…

Dabur India Ltd., New Delhi vs. DCIT, Circle-7(1), New Delhi

In the result, all these appeals are allowed for statistical purposes

ITA 7253/DEL/2017[2011-12]Status: DisposedITAT Delhi20 Sept 2022AY 2011-12
For Appellant: Shri Rohit Jain, AdvocateFor Respondent: Shri Mahesh Shah, CIT DR
Section 801BSection 92C

…Del./2017 ITA No.7253/Del./2017 ITA No.7431 /Del./2017 ITA No.183/Del./2018 no nexus with the units eligible for deduction has not been controverted by the Revenue. We find, the Hon’ble Bombay High Court in the case of Zandu Pharmaceuticals Works Ltd. vs CIT, 350 ITR 366 (Bom) has held that once the expenses have no nexus with the units eligible for deduction, such expenses cannot he allocated to units for the purpose of computing deduction u/s 80IB/80IC of the Act. Since the scientific research expenses of Rs 651 lakhs which were included in the head office expenses allocated by the AO are not connected with the…

Dabur India Ltd., New Delhi vs. DCIT, Circle- 7(1), New Delhi

In the result, all these appeals are allowed for statistical purposes

ITA 7154/DEL/2017[2010-11]Status: DisposedITAT Delhi20 Sept 2022AY 2010-11
For Appellant: Shri Rohit Jain, AdvocateFor Respondent: Shri Mahesh Shah, CIT DR
Section 801BSection 92C

…Del./2017 ITA No.7253/Del./2017 ITA No.7431 /Del./2017 ITA No.183/Del./2018 no nexus with the units eligible for deduction has not been controverted by the Revenue. We find, the Hon’ble Bombay High Court in the case of Zandu Pharmaceuticals Works Ltd. vs CIT, 350 ITR 366 (Bom) has held that once the expenses have no nexus with the units eligible for deduction, such expenses cannot he allocated to units for the purpose of computing deduction u/s 80IB/80IC of the Act. Since the scientific research expenses of Rs 651 lakhs which were included in the head office expenses allocated by the AO are not connected with the…

Sun Pharmaceuticals Industries Ltd., Vadodara vs. The Asstt. Commissioner of Income Tax, Circel-2(1)(1), Vadodara

The appeal of the assessee stands allowed in above terms

ITA 431/AHD/2017[1999-2000]Status: DisposedITAT Ahmedabad07 Sept 2022AY 1999-2000
For Appellant: Shri Bandish SoparkarFor Respondent: Shri A. P. Singh, CIT/D.R
Section 143(3)Section 250(6)Section 271(1)(c)Section 80I

…direct nexus established between the said expenses and manufacturing activity no expenses can be allocated. Reference was made to the decision of the Hon’ble Bombay High Court in the case of Zandu Pharmaceuticals Works Ltd. v Commissioner of Income Tax (2013) 350 ITR 366 (Bom). " That in any case it was a debatable issue. " that on the matter of allocation of R&D expenses, which is a mere estimation, there can be no levy of penalty for concealing or furnishing inaccurate particulars of income. He relied upon the following case laws in this regard: • CIT, Central-III, Mumbai vs Mirc Electronics Ltd. [2017] 77 taxm…

Hikal Ltd, Mumbai vs. DCIT Cir 3(1), Mumbai

In the result appeal of the assessee for A

ITA 5388/MUM/2012[2009-10]Status: DisposedITAT Mumbai23 Aug 2022AY 2009-10
Section 10ASection 10BSection 143(3)

…he point M/s. Hikal Ltd., of expenditure of R&D unit which is eligible for deduction u/s 35(1)(iv) of the Act need not be reduced from profits ; d) Decision of Hon‟ble Jurisdictional High Court in the case of Zandu Pharmaceuticals Works Ltd vs CIT reported in 350 ITR 366 (Bom) 4.5.2. Respectfully following the aforesaid decisions, we hold that there is no need to allocate expenses of Rs 2,86,76,162/- to EOU units and that assessee would be eligible for deduction u/s 35(1)(iv) of the Act of Rs 1,47,44,014/- and the same need not be allocated to EOU units. 4.6. With regard to yet another contention of the ld AO tha…

Hikal Ltd, Mumbai vs. DCIT Cir 3(1), Mumbai

In the result appeal of the assessee for A

ITA 5387/MUM/2012[2008-09]Status: DisposedITAT Mumbai23 Aug 2022AY 2008-09
Section 10ASection 10BSection 143(3)

…he point M/s. Hikal Ltd., of expenditure of R&D unit which is eligible for deduction u/s 35(1)(iv) of the Act need not be reduced from profits ; d) Decision of Hon‟ble Jurisdictional High Court in the case of Zandu Pharmaceuticals Works Ltd vs CIT reported in 350 ITR 366 (Bom) 4.5.2. Respectfully following the aforesaid decisions, we hold that there is no need to allocate expenses of Rs 2,86,76,162/- to EOU units and that assessee would be eligible for deduction u/s 35(1)(iv) of the Act of Rs 1,47,44,014/- and the same need not be allocated to EOU units. 4.6. With regard to yet another contention of the ld AO tha…

DCIT (OSD) Cir 3(1), Mumbai vs. Hikal Ltd, Mumbai

In the result appeal of the assessee for A

ITA 5372/MUM/2012[2009-10]Status: DisposedITAT Mumbai23 Aug 2022AY 2009-10
Section 10ASection 10BSection 143(3)

…he point M/s. Hikal Ltd., of expenditure of R&D unit which is eligible for deduction u/s 35(1)(iv) of the Act need not be reduced from profits ; d) Decision of Hon‟ble Jurisdictional High Court in the case of Zandu Pharmaceuticals Works Ltd vs CIT reported in 350 ITR 366 (Bom) 4.5.2. Respectfully following the aforesaid decisions, we hold that there is no need to allocate expenses of Rs 2,86,76,162/- to EOU units and that assessee would be eligible for deduction u/s 35(1)(iv) of the Act of Rs 1,47,44,014/- and the same need not be allocated to EOU units. 4.6. With regard to yet another contention of the ld AO tha…

The Dy. Commissioner of Income Tax, Circle-4(1)(2), Ahmedabad vs. Troikaa Pharmaceuticlas Limited, Ahmedabad

In the result, the CO filed by the assessee is dismissed as infructuous

ITA 939/AHD/2019[2011-12]Status: DisposedITAT Ahmedabad29 Jul 2022AY 2011-12

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita Nos. 939 & 1129/Ahd/2019 With C.O.Nos.169 & 181/Ahd/2019 िनधा"रण वष"/Asstt. Years: 2011-2012 & 2012-2013 D.C.I.T., Troikaa Pharmaceuticals Ltd., Circle-4(1)(2), Vs. Commerce House-I, Ahmedabad. Opp. Rajvansh Apartment, Judges Bunglow Road, Ahmedabad-380054. Pan: Aabct0228K

For Appellant: Shri Dhiren Shah, with Shri Karan Shah, A.RsFor Respondent: Shri Alokkumar, CIT.D.R
Section 37Section 37(1)Section 80I

…e three units in question. It thus emerges that the authorities below have adopted adhocism in applying the above turnover formula for allocating the impugned expenditure. Hon'ble Bombay high court's decision in Zhandu Pharmaceutical Works Ltd. vs. CIT (2013) 350 ITR 366 (Bom.) deletes similar disallowance in absence of non establishment of any nexus between R&D facilities and other units. We find that the authorities below have nowhere arrived at such a nexus in instant case as well. We therefore delete the impugned allocation by adopting the above discussed reasoning. The assesses succeeds in its substantive gr…

The DCIT, Circle-4(1)(2), Ahmedabad vs. Troikaa Pharmaceuticals Ltd, Ahmedabad

In the result, the CO filed by the assessee is dismissed as infructuous

ITA 1129/AHD/2019[2012-13]Status: DisposedITAT Ahmedabad29 Jul 2022AY 2012-13

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita Nos. 939 & 1129/Ahd/2019 With C.O.Nos.169 & 181/Ahd/2019 िनधा"रण वष"/Asstt. Years: 2011-2012 & 2012-2013 D.C.I.T., Troikaa Pharmaceuticals Ltd., Circle-4(1)(2), Vs. Commerce House-I, Ahmedabad. Opp. Rajvansh Apartment, Judges Bunglow Road, Ahmedabad-380054. Pan: Aabct0228K

For Appellant: Shri Dhiren Shah, with Shri Karan Shah, A.RsFor Respondent: Shri Alokkumar, CIT.D.R
Section 37Section 37(1)Section 80I

…e three units in question. It thus emerges that the authorities below have adopted adhocism in applying the above turnover formula for allocating the impugned expenditure. Hon'ble Bombay high court's decision in Zhandu Pharmaceutical Works Ltd. vs. CIT (2013) 350 ITR 366 (Bom.) deletes similar disallowance in absence of non establishment of any nexus between R&D facilities and other units. We find that the authorities below have nowhere arrived at such a nexus in instant case as well. We therefore delete the impugned allocation by adopting the above discussed reasoning. The assesses succeeds in its substantive gr…

Hikal Ltd, Mumbai vs. DCIT Cir 3(1), Mumbai

In the result, appeal by the assessee is partly allowed for statistical purpose

ITA 5386/MUM/2012[2007-08]Status: DisposedITAT Mumbai20 Jun 2022AY 2007-08

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

For Appellant: Shri Sanjay ParikhFor Respondent: Shri Tejinder Pal Singh Anand
Section 10BSection 14ASection 250Section 35Section 35(1)(vi)

…tre and also on the point of expenditure of R&D unit which is eligible for deduction u/s 35(1)(iv) of the Act need not be reduced from profits ; d) Decision of Hon’ble Jurisdictional High Court in the case of Zandu Pharmaceuticals Works Ltd vs CIT reported in 350 ITR 366 (Bom) 4.5.2. Respectfully following the aforesaid decisions, we hold that there is no need to allocate expenses of Rs 2,86,76,162/- to EOU units and that assessee would be eligible for deduction u/s 35(1)(iv) of the Act of Rs 1,47,44,014/- and the same need not be allocated to EOU units.” 19. The learned DR could not show any reason to deviate f…

Wockhardt Limited, Aurangabad vs. Assistamt Commissioner of Income Tax, Circle -3, Aurangabad

In the result, the appeal filed by Revenue is partly allowed, the appeal filed by assessee is partly allowed and the CO filed by assessee is dismissed as withdrawn

ITA 758/PUN/2019[2013-14]Status: DisposedITAT Pune10 May 2022AY 2013-14

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita No.775/Pun/2019 निर्धारण वषा / Assessment Year : 2013-14 Acit, Circle-3, Aurangabad .......अऩीऱाथी / Appellant बिधम / V/S. Wockhardt Ltd., R&D Centre, D-4, Midc, Chikalthana, Aurangabad. Pan: Aaacw2472M ……प्रत्यथी / Respondent आयकर अपीऱ सं. / Ita No.758/Pun/2019 निर्धारण वषा / Assessment Year : 2013-14 Wockhardt Ltd., R&D Centre, D-4, Midc, Chikalthana, Aurangabad. Pan: Aaacw2472M .......अऩीऱाथी / Appellant बिधम / V/S. Acit, Circle-3, Aurangabad ……प्रत्यथी / Respondent Co No.43/Pun/2019 निर्धारण वषा / Assessment Year : 2013-14 Wockhardt Ltd., R&D Centre, D-4, Midc, Chikalthana, Aurangabad. Pan: Aaacw2472M .......Cross Objector बिधम / V/S. Acit, Circle-3, Aurangabad ……प्रत्यथी / Respondent Co No.43/Pun/2019

For Appellant: Shri Rajan VoraFor Respondent: Shri Anurag Shivastava
Section 143(3)Section 14ASection 35Section 80ISection 92B

…131 on 11.11.2000 wherein it is stated that the R&D work is also used by the production unit, thus, R&D expenditure is incurred only in connection with the business purposes. The ld. CIT(A) relying on the decision of Zandu Pharmaceuticals Works Ltd. vs. CIT (350 ITR 366) and CIT vs. Glenmark Pharmaceuticals Ltd. (supra) allowed exemption u/s 80IC without allocation of R&D expenditure. 19. We have carefully gone through the decisions rendered by the Hon’ble Bombay High Court in the cases of Zandu Pharmaceuticals Works Ltd. vs. CIT (supra) and CIT vs. Glenmark Pharmaceuticals Ltd. (supra). The decision of Hon’ble…

Macleods Pharmaceuticals Ltd., Mumbai vs. Dy CIT CC 2 (4), Mumbai

In the result, the appeal filed by the assessee is allowed whereas the appeal filed by the Revenue is dismissed

ITA 7770/MUM/2019[2010-11]Status: DisposedITAT Mumbai10 May 2022AY 2010-11

Bench: Shri Sanjay Garg () & Shri Om Prakash Kant () Assessment Year: 2010-11 Deputy Commissioner Of Income Tax M/S Macleods Pharmaceuticals Central Circle-2(4), Limited, Room No. 802, Old Cgo Building, 8Th Vs. 304, Atlanta Arcade, Marol Church Floor, M.K. Road, Road, Andheri (West) Mumbai-400020. Mumbai-400059. Pan No. Aaacm 4100 C Appellant Respondent Assessment Year: 2010-11 M/S Macleods Pharmaceuticals Deputy Commissioner Of Income Limited, Tax Central Circle-2(4), 304, Atlanta Arcade, Marol Church Vs. Room No. 802, Old Cgo Building, 8Th Road, Andheri (West) Floor, M.K. Road, Mumbai-400059. Mumbai-400020. Pan No. Aaacm 4100 C Appellant Respondent Assessee By : Mr. Ashok Bansal, Ar Revenue By : Mr. Achal Sharma, Cit-Dr Date Of Hearing : 10/05/2022 Date Of Pronouncement : 10/05/2022

For Appellant: Mr. Ashok Bansal, ARFor Respondent: Mr. Achal Sharma, CIT-DR
Section 143(3)Section 153A

…g undertakings. Details of products manufactured by the units and products on which R & D is undertaken were on records which shows that they are completely independent from each other. Assessee placed reliance on the Zandu Pharmaceuticals Works Ltd., v. CIT [350 ITR 366] and various other decisions in support of his contention that R & D expenditure incurred in head office cannot be allocated to the units. We observe from the Assessment Order that the Assessing Officer predominantly stating that R & D expenditure incurred by the assessee is inextricably linked with the business of the assessee including the busi…

Dy CIT CC 2 (4), Mumbai vs. M/S Maccleods Pharmaceuticals Ltd, Mumbai

In the result, the appeal filed by the assessee is allowed whereas the appeal filed by the Revenue is dismissed

ITA 7612/MUM/2019[2010-11]Status: DisposedITAT Mumbai10 May 2022AY 2010-11

Bench: Shri Sanjay Garg () & Shri Om Prakash Kant () Assessment Year: 2010-11 Deputy Commissioner Of Income Tax M/S Macleods Pharmaceuticals Central Circle-2(4), Limited, Room No. 802, Old Cgo Building, 8Th Vs. 304, Atlanta Arcade, Marol Church Floor, M.K. Road, Road, Andheri (West) Mumbai-400020. Mumbai-400059. Pan No. Aaacm 4100 C Appellant Respondent Assessment Year: 2010-11 M/S Macleods Pharmaceuticals Deputy Commissioner Of Income Limited, Tax Central Circle-2(4), 304, Atlanta Arcade, Marol Church Vs. Room No. 802, Old Cgo Building, 8Th Road, Andheri (West) Floor, M.K. Road, Mumbai-400059. Mumbai-400020. Pan No. Aaacm 4100 C Appellant Respondent Assessee By : Mr. Ashok Bansal, Ar Revenue By : Mr. Achal Sharma, Cit-Dr Date Of Hearing : 10/05/2022 Date Of Pronouncement : 10/05/2022

For Appellant: Mr. Ashok Bansal, ARFor Respondent: Mr. Achal Sharma, CIT-DR
Section 143(3)Section 153A

…g undertakings. Details of products manufactured by the units and products on which R & D is undertaken were on records which shows that they are completely independent from each other. Assessee placed reliance on the Zandu Pharmaceuticals Works Ltd., v. CIT [350 ITR 366] and various other decisions in support of his contention that R & D expenditure incurred in head office cannot be allocated to the units. We observe from the Assessment Order that the Assessing Officer predominantly stating that R & D expenditure incurred by the assessee is inextricably linked with the business of the assessee including the busi…

ACIT (Ltu)-1, Mumbai vs. M/S Glenmark Pharmaceuticals Ltd., Mumbai

ITA 884/MUM/2020[2009-10]Status: DisposedITAT Mumbai29 Apr 2022AY 2009-10

Bench: Shri M. Balaganesh & Shri Kuldip Singhassessment Year: 2009-10 Asst. Commissioner Of M/S. Glenmark Income Tax (Ltu)-1, Pharmaceuticals Ltd., 29Th Floor, Center-1, Glenmark House, World Trade Center, Hdo Corporate Building, Cuffe Parade, Wing A, Mumbai – 400 005 Vs. B.D. Sawant Marg, Chakla, Opp. Western Express Highway, Andheri (East), Mumbai – 400 099 Pan: Aaacg2207L (Appellant) (Respondent) Present For: Assessee By : Shri Anuj Kisnadwala, A.R. Revenue By : Shri Hoshang B. Irani, D.R. Date Of Hearing : 16 . 02 . 2022 Date Of Pronouncement : 29 . 04 . 2022 O R D E R Per : Kuldip Singh: The Appellant, Asst. Commissioner Of Income Tax (Ltu), Mumbai (Hereinafter Referred To As ‘The Revenue’) By Filing The Present Appeal, Sought To Set Aside The Impugned Order Dated 22.11.2019 Passed By Commissioner Of Income Tax (Appeals)-3, Mumbai [Hereinafter Referred To As The Cit(A)] Qua The Assessment Year 2009-10 On The Grounds Inter Alia That :-

For Appellant: Shri Anuj Kisnadwala, A.RFor Respondent: Shri Hoshang B. Irani, D.R
Section 115JSection 143Section 80CSection 80I

…R&D expenditure after giving specific finding whether any part of such expenditure has any direct nexus to the Baddi Unit and then decide the issue in the light of judgment of Hon’ble Bombay High Court in the case of Zandu Pharmaceuticals Works Ltd. vs. CIT (350 ITR 366)” 4. Tribunal, however, remitted the case back to the AO to return the definite findings of the fact “as to whether any part of such R&D expenditure has direct nexus to the Baddi units and then decide the issue in the light of the judgment of Hon’ble Bombay 4 M/s. Glenmark Pharmaceuticals Ltd. High Court rendered in the case of Zandu Pharmaceut…

DCIT, New Delhi vs. M/S. Dabur India Ltd., New Delhi

The appeal of the assessee is partly allowed for statistical purposes and appeal of the revenue is dismissed

ITA 3790/DEL/2015[2009-10]Status: DisposedITAT Delhi24 Nov 2021AY 2009-10

Bench: Shri N. K. Billaiya & Ms Suchitra Kamblei.T.A. No. 3423/Del/2015 (A.Y 2009-10) (Through Video Conferencing) M/S Dabur India Ltd. Vs Addl. Commissioner Of Income 8/3, Asaf Ali Road, Tax, New Delhi Range-10 (Appellant) New Delhi (Respondent)

Section 143Section 92C

…1 lakhs is concerned, the finding of the id. CIT(A) that such expenses have no nexus with the units eligible for deduction has not been controverted by the Revenue. We find, the Hon’ble Bombay High Court in the case of Zandu Pharmaceuticals Works Ltd. vs CIT, 350 ITR 366 (Bom) has held that once the expenses have no nexus with the purpose of computing deduction u/s 80IB/80IC of the Act. Since the scientific research expenses of Rs 651 lakhs which were included in the head office expenses allocated by the AO are not connected with the units eligible for deduction u/s 80IB/80IC, the same, in our opinion, cannot be…

Dabur India Ltd., New Delhi vs. Addl. CIT, New Delhi

The appeal of the assessee is partly allowed for statistical purposes and appeal of the revenue is dismissed

ITA 3423/DEL/2015[2009-10]Status: DisposedITAT Delhi24 Nov 2021AY 2009-10

Bench: Shri N. K. Billaiya & Ms Suchitra Kamblei.T.A. No. 3423/Del/2015 (A.Y 2009-10) (Through Video Conferencing) M/S Dabur India Ltd. Vs Addl. Commissioner Of Income 8/3, Asaf Ali Road, Tax, New Delhi Range-10 (Appellant) New Delhi (Respondent)

Section 143Section 92C

…1 lakhs is concerned, the finding of the id. CIT(A) that such expenses have no nexus with the units eligible for deduction has not been controverted by the Revenue. We find, the Hon’ble Bombay High Court in the case of Zandu Pharmaceuticals Works Ltd. vs CIT, 350 ITR 366 (Bom) has held that once the expenses have no nexus with the purpose of computing deduction u/s 80IB/80IC of the Act. Since the scientific research expenses of Rs 651 lakhs which were included in the head office expenses allocated by the AO are not connected with the units eligible for deduction u/s 80IB/80IC, the same, in our opinion, cannot be…

M/S. Interarch Building Products Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 1137/DEL/2013[2006-07]Status: DisposedITAT Delhi17 Nov 2021AY 2006-07

Bench: Shri O.P. Kant & Shri Kuldip Singh[Through Video Conferencing] Assessment Year: 2006-07 Interarch Building Vs. Dcit Products Pvt. Ltd., Circle -11 (1) Farm No.8 Khasra New Delhi No.56/23/2, Dera Mandi Village, Mehrauli New Delhi-110047 Pan No.Aaaci0106J (Appellant) (Respondent)

Section 143(3)Section 14ASection 80Section 80ISection 94

…by the assessee from industrial undertaking and accordingly the allocation of such head Office expenses should not be made to industrial unit while working out the profits of the industrial undertaking eligible for deduction u/s 80IB and 80IC of IT Act: (i) 350 ITR 366-371 Zandu Pharmaceuticals Works Ltd. vs. CIT (ii) 273 ITR 152 (Mad) Bush Boake Allen India Pvt. Ltd. vs. ACIT (iii) 394 ITR 73 (Bom) CIT vs. Hindustan Unilever Ltd. (iv) 350 ITR 41-51 (Del) CIT vs. EHPT India P. Ltd. 20. In view of the above arguments, the learned Counsel submitted that deduction u/s 80IB in respect of the profits of the ‘G…

Macleods Pharmaceuticals Ltd, Mumbai vs. Deputy Commissioner of Income Tax 10(2)(2), Mumbai

In the result, appeal of the assessee is partly allowed as indicated above

ITA 7167/MUM/2017[2009-10]Status: DisposedITAT Mumbai14 Sept 2021AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

For Appellant: Shri Ashok BansalFor Respondent: Shri Bharat Andhale
Section 115JSection 133(6)Section 143(3)Section 147Section 148Section 80I

…manufactured by the units and products on which R&D is undertaken were on records and which are completely independent from each other. It is submitted that the ratio of judgement of Hon'ble Bombay High Court in the case of Zandu Pharmaceutical Works Limited [350 ITR 366] applies squarely to the assessee’s case. 11 ITA.NO. 7167/MUM/2017 (A.Y: 2009-10) M/s. Macleods Pharmaceuticals Ltd., 14. Ld. Counsel for the assessee also placed reliance on the following decisions in support of his submissions: - (i). Bush Baoke Allen India Limited v. ACIT [2005] 273 ITR 152 (Mad.) (ii). International Flavors & Fragrances Indi…