Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

DCIT, Circle-1, Ahmedabad Versus BA Research India Ltd.

Entitlement to Section 80IB(8A) deduction - whether the assessee’s sample storage incomes are to be held as derived from the eligible business for granting the impugned deduction or not? - Held that:- There is no dispute about the fact that the assessee is in the research and development field duly approved by the competent authority and already held entitled for Section 80 IB (8A) deduction. It enters into Master Service Agreement with its clients for conducting the above stated clinical studie .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in May 2014. This letter issued by Department of Health and Human Services, Public Health Service, Food & Drug Administration, Silver Suffering, MD 20993 to this effect is dated 01.07.2015. The Revenue fails to rebut this factual position.

The case file further reveals that the assessee’s clients have to exercise an option of discarding, returning and retention of samples in lieu of paying the impugned storage studies. We put up a specific query to the Revenue as to whether the asses .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uch a nature which can be held as not ‘derived’ from the eligible business. The Revenue’s argument is accordingly rejected. Thus the assessee’s sample storage income is very much derived from its research and development activity only. - Decided against Revenue. - ITA. Nos. 2431 & 2432/Ahd/2012 - Dated:- 14-8-2015 - SHRI ANIL CHATURVEDI AND SHRI S. S. GODARA, JJ. For The Revenue : Shri D. C. Mishra, Sr.D.R For The Assessee : Shri Mukesh M. Patel ORDER PER S. S. GODARA, JUDICIAL MEMBER These Reve .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s state at the outset that the sole issue involved in these two appeals is that of Section 80IB(8A) deduction i.e. whether the assessee s sample storage incomes hereinabove are to be held as derived from the eligible business for granting the impugned deduction or not. We take up ITA No. 2431/Ahd/2012 as the lead case. 3. The Assessing Officer in the course of scrutiny noticed assessee s sample storage income of ₹ 13,45,928/- in its P&L account included for claiming Section 80IB(8A) de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aid sample would be retained pending license approval application and inspection procedures. It explained that these pharmaceutical studies sample required specific storage conditions instead of general ones. The Assessing Officer was not impressed. He observed in assessment order dated 23.12.2009 that impugned sample storage income had to be characterized as a miscellaneous one only, there was no material produced of pending license approvals, the assessee s clients had to maintain the samples .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rejoinder. Appellant claimed deduction under section 80 IB (8A) on profit of business from scientific research including sample storage income being integral part of scientific research. Assessing Officer disallowed the claim of deduction on sample storage income on the ground that this activity is not integral part of scientific research and that this income was separately shown in P&L account. It is not in dispute that appellant is approved as R&D company under section 80 IB (8A) by DS .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

purpose, the appellant carried out analysis of clinical samples. Clinical samples collected are required to be stored as per regulatory guidelines until the necessary licensing approval is granted to the Pharma companies. This is because re-analysis of the samples may be necessary to support the research findings and to resolve the queries raised by regulatory authorities. Since storage of the samples for required period is to be done under special conditions, appellant received over and above b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ment. Appellant s business of scientific research and development extends till the fulfillment of all regulatory requirements. During this process, samples collected are to be stored and preserved in specific conditions and environment for the required period. Since the period of storage is different for different samples and regulatory requirements, the charges are variable based on the period for which samples were preserved. In view of this, the charges for sample storage could not have been .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

profit is eligible for deduction under section 80IB(8A). In view of this, just by mentioning the sample storage income separately in P&L account, the same will not become independent source of income other than scientific research and development. Appellant relied upon the judicial decisions in which it is held that interest from overdue debtors and erection and commissioning charges are not directly derived from industrial undertaking but the same are integral part of industrial undertaking .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

TAXMAN 349 (SC) and strongly argues that the CIT(A) ought to have upheld the Assessing Officer s action in disallowing the impugned claim of Section 80IB(8A) deduction qua the sample storage income in question. The assessee supports the lower appellate authority s order. There is no dispute about the fact that the assessee is in the research and development field duly approved by the competent authority and already held entitled for Section 80 IB (8A) deduction. It enters into Master Service Agr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

News: Notification Issued For GST Actionable Claim On Branded Food Products

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Forum: Duty Drawback- Urgent

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities – Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Forum: GST Invoice

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Circular: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg.

News: GST implementation smoother than expected: Jaitley

Forum: GST - TRAN1 - filed - Data uploaded with Remarks Processed with Error - Not coming in Electronic credit ledger - need suggession guidance

Forum: 3B mistake

Forum: Input tax credit

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Due date of Filing TRAN-1

Highlight: Diversion of income at source - Joint venture agreement - 97% of the receipt transfer to M/s TRG Industries (P) Ltd. - scope of the agreement - it is diversion by overriding title - not taxable in the hands of assessee - HC

Highlight: Expenditure on eligible projects or schemes u/s 35AC - After 01.04.2017 the legislature desired to withdraw such deduction. - The Union legislature was competent to introduce such amendment - HC

Highlight: Transfer of trading assets at cost price, the profit component also stood transferred to the outgoing Directors, which otherwise belonged to the Company - the fact that AO has made the addition in the hands of the Directors would not make any difference - additions confirmed - HC

Highlight: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version