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TMI Blog2019 (2) TMI 1539X X X X Extracts X X X X X X X X Extracts X X X X ..... lication for early hearing is allowed and the Bench is proceeded to hear and decide the appeal by today itself. 2. The appellant, M/s. Jubilant Biosys Limited (hereinafter referred to as 'the assessee') by filing the present appeal, sought to set aside the impugned order dated 31.03.2018 passed by Ld. CIT (Appeals)-I, Noida qua the Assessment Year 2011-12 on the grounds inter alia that :- "1. That on the facts and in the circumstances of the case and in law, the order passed by the Ld. Commissioner of Income Tax (Appeals) [CIT(A)] under section 271(1)(c) of the Income Tax Act 1961 ["the Act] is bad in law and passed in haste without providing reasonable opportunity to the appellant more so when the quantum merits appeal is currently pend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has willfully furnished the inaccurate particulars of income and has deliberately concealed particulars of its income. 4. Feeling aggrieved, the assessee has come up before the Tribunal by way of filing the present appeal. 5. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 6. At the very outset, it is brought to our notice by the ld. AR for the assessee that since the co-ordinate bench of the Tribunal vide order dated 28.11.2018 in ITA Nos.7302/Del/2017, 1822/del/2018, 1823/Del/2018, 2759/Del/2018 & 2760/Del/2018, has deleted the quantum addition, pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered are as per agreement, and upon termination of agreement all research materials, notes etc shall be property of Elly Lilly and Co. Ld.Counsel further submitted that on one hand assessing officer is accepting income offered by assessee received from research services rendered, and on other hand expenditure incurred for earning income has been totally disallowed. Placing reliance upon audited accounts placed in paper book, Ld.Counsel submitted that breakup of expenditure incurred by assessee are as under: Particulars Amount (Rs.) Remarks Cost of Services and Other Expenses (excluding subcontractor services) 64,98,47,000 Such expenses were incurred towards: 1. Lab Chemicals and Spares Consumed; 2. Repairs and Maintenance of Plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that expenditure has not been incurred for purposes of research activity carried on by assessee in its normal course of business. We draw our support from decision of Hon'ble Supreme Court in case of Empire Jute Company Ltd vs. CIT reported in (1980) 124 ITR 1, wherein Hon'ble Court laid down that test of enduring benefit cannot be applied blindly and mechanically without having regard to facts and circumstances of a given case. We also referred to Clause 5.1 of agreement at page 109 of paper book, wherein assessee has to ensure that it is able to carry out its obligations under contract, wherein the ownership of inventions of research services under agreement was to be retained by Eli Lilly and not by assessee. 17. We are therefore are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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