ITAT Mumbai allows the appeal of ARCH PHARMALABS Ltd for statistical purposes.

Last updated: 22 January 2021

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The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has allowed the appeal filed by Arch Pharmalabs Ltd for the assessment year 2012-13. The tribunal considered the company's registered sick status with the BIFR, which offered protection against recovery. The appeal addressed the dismissal by the CIT(A) for non-payment of due tax and the disallowance of Rs. 1,87,47,906/- as bogus purchases, which the CIT(A) had based on Sales Tax Department information without concrete proof.

Court :
ITAT Mumbai

Brief :
This appeal by the assessee is directed against order of learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] dated 29.7.2016 and pertains to assessment year 2012-13.

Citation :
I.T.A. No. 5980/Mum/2016

THE INCOME TAX APPELLATE TRIBUNAL
“D” Bench, Mumbai
Shri Shamim Yahya (AM) & Shri Pavankumar Gadale (JM)

I.T.A. No. 5980/Mum/2016 (Assessment Year 2012-13)

M/s. Arch Pharmalabs Ltd.
H-Wing, 4th Floor, Tex
Centre, Opp. Saki Vihar
Road, Chandival i , Andheri
East, Mumbai-400 072.
PAN : AACCM0306Q
(Appellant)

Vs.

DCIT Central
Circle-5(1)
Air India Bui lding
Nariman Point
Mumbai-400 021.
(Respondent)

Assessee by Shri Rajeev Khandelwal
Department by Shri Ravindra Mishra

Date of Hearing 10.12.2020
Date of Pronouncement 1.1.2021

O R D E R

Per Shamim Yahya (AM) :-

This appeal by the assessee is directed against order of learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] dated 29.7.2016 and pertains to assessment year 2012-13.

2. The grounds of appeal read as under :-

1. The Learned CIT (A) erred in law and on facts in dismissing the appealbefore him on the ground that the appellant has not paid due tax in full u/s 249(4)(a) for the year under appeal.

2. The CIT (A) ignored the fact that the Appellant has been registered as sick company under Sick Industrial Companies Act by BIFR and hence protectedagainst the recovery.

3. On the facts and circumstances of the case and in Law, the learned Commissioner of Income Tax (Appeals) (CIT-A) has grossly erred sum of Rs.1,87,47,906/- as bogus purchases.

4. The learned CIT-A has erroneously relied upon information's received from Sales Tax Department and not proved anything concrete regarding alleged bogus purchases.

To know more in details find the attachment file

FAQ :

The appeal concerned the dismissal by the CIT(A) for non-payment of due tax and the disallowance of a significant sum as bogus purchases, which the company contested.

Arch Pharmalabs Ltd was registered as a sick company by the BIFR, which provided protection against recovery proceedings.

The amount disputed as bogus purchases was Rs. 1,87,47,906/-.

The CIT(A) relied on information received from the Sales Tax Department, which the appellant argued did not prove anything concrete.

The ITAT Mumbai allowed the appeal filed by Arch Pharmalabs Ltd.