TMI Blog2016 (10) TMI 1379X X X X Extracts X X X X X X X X Extracts X X X X ..... er environment over disposal, etc. After passing the said tests, the concerned Government allows sale of such products in the Country. On the said facts and circumstances the CIT(A) has relied upon the case decided in the case of Panacea Biotech Ltd. [ 2012 (2) TMI 15 - DELHI HIGH COURT ] and case of Cadilla Healthcare Ltd. [ 2013 (3) TMI 539 - GUJARAT HIGH COURT ] No distinguishable facts and law has been placed on record by the revenue at the time of arguments. Additional evidence which relevant to the facts of the case, can be taken into consideration during appellate proceeding in accidence with law. The CIT(A) has passed the orders judiciously and correctly which does not require to be interfere with at this appellate stage. Deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income Tax Act, 1961 ( in short the Act ). Thereafter, the case was selected for scrutiny. Notice u/s.143(2) of the Act was issued on 20.08.2010 and duly served upon the assessee on 06.09.2010. Further notices u/s.142(1) of the Act alongwith questionnaires calling for various details were issued on 23.08.2010, 16.08.2011, 20.10.2011 and 25.11.2011 and duly served upon the assessee. The assessee is engaged in the business of manufacturing of drugs and pharmaceuticals. During the year under consideration, sales and services have been shown at Rs.33,45,24,535/- and net profit has been computed at Rs.37,58,554/-. The assessee has shown the office administrative expenses in his Profit Loss Account and debited an amount of Rs.43,06,904/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disposal, etc. Once the product passes through above tests, the concerned Government allows sale of such products in the County. In support of the contention that such product registration expenditure is of revnue in nature, the AR has relied on the decision of Hon ble High Court of Delhi in the case of Panacea Biotech Ltd. The Hon ble High Court was of the view that test of enduring benefit cannot be the sole criterion and it cannot be applied blindly and mechanically without regard to the particular facts and circumstances of a given case. In this case, such expenditure was allowed by the AO in A.Y.2003-04 and 2004-05. The addition were deleted by the CIT(A) and revenue did not prefer any appeal before the Hon ble ITAT. For A.Y.2005-06, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the process. The Tribunal, therefore, held that the expenditure only enable the assessee to run the existing business smoothly and therefore, it cannot be stated that the assessee acquired any tangible or intangible assets. With respect to patent and trademark registration, the Tribunal held that for protection of result of the research of the assessee, such patent had to be registered. It was observed that enduring benefit is not the only criteria. The same must be coupled with acquisition of asset. The finding of the Hon ble court is as under: With respect to the expenditure incurred for production registration charges, we agree with the view of the Tribunal that the assessee did not acquire my new asset. As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or human consumption, impact over environment over disposal, etc. After passing the said tests, the concerned Government allows sale of such products in the Country. On the said facts and circumstances the CIT(A) has relied upon the case decided by the Hon ble High Court of Delhi in the case of Panacea Biotech Ltd. and Hon ble High Court of Gujarat in the case of Cadilla Healthcare Ltd. in tax appeal no.752 of 2012 dated 20.03.2013. No distinguishable facts and law has been placed on record by the revenue at the time of arguments. Additional evidence which relevant to the facts of the case, can be taken into consideration during appellate proceeding in accidence with law. The CIT(A) has passed the orders judiciously and correctly which does ..... X X X X Extracts X X X X X X X X Extracts X X X X
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