TaxTMI 
TaxTMI 
2021 (3) TMI 1109
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....ing of pharmaceuticals, filed its e-return of income, declaring a total income of Rs. 95,35,990/- under normal provisions and book profit of Rs. 1,54,75,998/- u/s 115JB of the Act. The case was selected for scrutiny through CASS and accordingly notices u/s 143(2) and 142(1) were issued to the assessee. In response to the same, the assessee attended through its representative and furnished the requisite information and clarifications. 3. During the assessment proceedings, the AO observed that there was a difference between the receipts reported by the assessee in its return of income and Form 26AS. He found that the receipts from conversion charges are Rs. 2,72,76,026.05 as against Rs. 1,54,11,244/- reported by the assessee in its return ....
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.... Rs. 8000/- was paid for increasing the authorized share capital. AO therefore, held that it is a capital expenditure and disallowed it and brought it to tax. 7. Further, the AO also observed that the assessee has earned an income of Rs. 13,63,190/- from its trading unit which is not eligible for deduction u/s 80IC and also income of Rs. 5,24,127/- from other sources, whereas, the assessee has claimed deduction u/s 80IC on the entire income. The assessee was therefore, asked to explain as to why the deduction u/s 80IC should not be withdrawn from the income from trading unit and income from other units. The assessee submitted that proportionate net profit of trading unit may be treated as income from the trading unit, but since the detai....
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.... such amount as conversion charges in the pervious year 2012-13 based on the invoices raised on M/s. Biocon Limited during last week of March,2013, and the said party has accounted such invoices on receipt of the same in April 2013 in the previous year 2013-14 and made the payments after deducting taxes for Ay 2014-15. 4. The Commissioner (Appeals) failed to appreciate the material filed before her and simply has gone by Form 26AS which cannot be the basis for making addition. 5. The Commissioner (Appeals) erred in sustaining the addition of Rs. 11,57,700 being the loan amount of Rs. 11,57,700 received by the Appellant from M/ s. Ajanta Pharma Limited as unreported turnover of the Appellant. Inspite of the fact that Appell....
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....ght to have directed for set of interest income against the interest expenditure incurred by the Appellant. 11. The Commissioner (Appeals) erred in upholding the disallowance of deduction under section 80IC of the Act in respect of trading done of Rs. 13,63,190. The Commissioner (Appeals) failed to appreciate that there was no income from the sales made to H.O. of Rs. 13,63,190 and that the action of the AO in disallowing the trading receipt of Rs. 13,63,190 in entirety from the income eligible for deduction under section 801C of the Act is incorrect. 12. Without prejudice to the above ground, the Commissioner (Appeals) ought to have appreciated that in the absence of separate account for trading, the amount that could hav....
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....k wherein all the details have been given by the assessee. The invoices and also the ledger a/c of the parties are submitted before us and the certificate is also given that these documents have been filed before the AO and the CIT (A) except for the information from M/s. Alembic Pharmaceuticals Ltd and M/s. Ajanta Pharma Ltd before the CIT (A). We find that the CIT (A) has failed to consider the same nor has she called for a remand report from the AO for the evidence filed by the assessee. In view of the same, we deem it fit and proper to remand the Grounds 2 to 6 to the file of the AO for verification and reconsideration in accordance with law. Therefore, Grounds 2 to 6 are allowed for statistical purposes. 11. As regards Grounds 8 to ....