2019 (5) TMI 337

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....hort "the Act"). 3. Brief facts common in both the assessment years are, the assessee company is engaged in the business of manufacturing and selling of pharmaceutical products and R&D activity. For the assessment year under dispute, the assessee filed its returns of income under normal provisions after claiming deduction under section 80IB of the Act. However, the assessee declared book profit under section 115JB of the Act. In the course of assessment proceedings, the Assessing Officer while verifying assessee's claim of deduction under section 80IB of the Act for Assessment Year 2011-12 in respect of the Goa Unit, noticed that the assessee has included the income from scrap sale amounting to Rs. 20,67,157, as income derived from the ind....

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....and perused material on record. Undisputedly, the allowability of deduction under section 80IB of the Act in respect of income generated from scrap sales arose in assessee's own case in assessment year 2009-10. The Tribunal while deciding the issue in ITA no.5515/Mum./2013, dated 5th February 2016, has allowed assessee's claim of deduction. Following the aforesaid decision of the Tribunal, learned Commissioner (Appeals) has also allowed assessee's claim of deduction under section 80IB of the Act in respect of scrap sales in assessment year 2010-11. Facts being identical, respectfully following the decision of the Co-ordinate Bench as referred to above, we uphold the decision of the learned Commissioner (Appeals) in allowing assessee's claim....

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....ssions of the assessee and relying upon the decision of the Tribunal in case of assessee's holding company viz. Glenmark Pharmaceuticals Ltd. and the decision of the Hon'ble Jurisdictional High Court in DCIT v/s Everest Kento Cylinders Ltd., [2015] 378 ITR 57 (Bom.), learned Commissioner (Appeals) directed the Assessing Officer to consider the arm's length price of the corporate guarantee commission @ 0.5% per annum in both the assessment years under appeal. 11. The learned Departmental Representative relied upon the observations of the Assessing Officer. 12. The learned Authorised Representative strongly supporting the decision of the learned Commissioner (Appeals) submitted that the Hon'ble Jurisdictional High Court in CIT v....