INTAS PHARMACEUTICALS LTD. Vs. DCIT AND ORS.

JUDGEMENT

(1.) THIS batch of eleven cases relates to assessment years 2002 -03, 03 -04, 04 -05, 05 -06, 07 -08 & 08 -09. The lower appellate order passed by the CIT(A) -III, Ahmedabad, dated 29.09.2010 under challenge is common in A.Y. 02 -03 to 05 -06. All these four assessment years involve proceedings u/s. 153A r.w.s. 143(3) of the Income Tax Act, 1961 (in short 'the Act'). The assessee has filed IT(SS)A No. 807/Ahd/2010 in A.Y. 2002 -03 raising grounds of validity of Section 153A proceedings, Section 80HHC deduction of Rs. 22,00,715/ -, regarding quantification of another deduction u/s. 80JJAA and that of 80G deduction totaling to Rs. 1,65,001/ -; respectively. Next assessment year 2003 -04 involves assessee's appeal IT(SS)A No. 808/Ahd/2010 comprising of grounds challenging validity of Section 153A proceedings, disallowance of deduction u/s. 80HHC of Rs. 24,50,509/ -, quantification of Section 80JJA deduction and also Section 80G deduction of Rs. 1,30,000/ -; respectively. The Revenue's cross appeal No. IT(SS)A No. 819/Ahd/2010 asseeils lower appellate order deleting disallowance of Rs. 1,15,49,116/ - relating to staff welfare expenses and deferred revenue expenditure. Next A.Y. 2004 -05 comprises of assessee's appeal IT(SS)A No. 809/Ahd/2010 raising grounds of validity of Section 153A proceedings and Section 80HHC deduction claim of Rs. 4,92,223/ -. The Revenue's cross appeal IT(SS)A No. 820/Ahd/2010 challenges CIT(A)'s order deleting disallowance of Rs. 1,15,83,646/ -relating to staff welfare expenses, miscellaneous expenses, interest expenditure u/s. 14A and 36(i)(iii) of the Act; respectively. The next A.Y. 2005 -06 involves Revenue's appeal IT(SS)A No. 821/Ahd/2010 seeking restoration of disallowance amounting to Rs. 1,13,48,242/ - of staff welfare expenses, miscellaneous and interest expenses u/s. 14A r.w.s. 36(1)(iii) of the Act. The assessee has filed C.O. NO. 4/Ahd/2011 therein challenging the very assumption of jurisdiction u/s. 153A of the Act.

(2.) A perusal of the above stated pleadings reveals that the first four assessment years from 2002 -03 to 2005 -06 raise a very fundamental question of validity of Section 153A proceedings initiated by the Assessing Officer and upheld by the CIT(A) in the common order under challenge. This legal plea goes to root of the matter. We proceed to adjudicate the same together in all these cases.

(3.) THE Revenue strongly opposes the assessee's above stated arguments and submits that an assessing authority can initiate Section 153A proceedings by reopening all assessments pertaining to the preceding six assessment years after search and assess income afresh as per law. It quotes case law of : (2014) 49 taxmann.com 98 (Karnataka) Canara Housing Development Co. v. DCIT, : [2014] 52 taxmann.com 172 (Allahabad) CIT v. Raj Kumar Arora,, [2014] 49 taxmann.com 465 (Delhi) Filatex India Ltd. v. CIT, : [2014] 24 taxmann.com 98 (Delhi) CIT v. Anil Kumar Bhatia, [2015] 53 taxmann.com 391(Bangalore - Trib.) Rupesh Anand v. ACIT, : [2010] 130 TTJ 700 (Chennai) Harvey Heart Hospitals Ltd. v. ACIT and prays for upholding the CIT(A)'s common order under challenge on this legal plea in question.