Bayer Bioscience Private Limited Vs ACIT (ITAT Mumbai)
Summary: The captioned appeals were filed by the assessee against appellate orders dated 06.03.2020 and 13.03.2020 relating to Assessment Years 2009-10 and 2010-11. The assessment orders had been passed under Section 143(3) of the Income-tax Act, 1961. The Tribunal first considered the appeal for AY 2009-10.
The appeal for AY 2009-10 was delayed by 918 days. The assessee sought condonation of delay, stating that the appellate order had not been received at its physical address or the email address mentioned in the return or on the income-tax portal. The assessee also referred to the COVID-19 period and the nationwide lockdown. After considering the submissions, the Tribunal found that the delay was not intentional and was attributable to unavoidable and sufficient cause. Relying on Collector, Land Acquisition v Mst. Katiji And Others- 167 ITR 471 (SC), the Tribunal condoned the delay and proceeded to decide the appeal on merits.
For AY 2009-10, one issue concerned the disallowance of Rs. 19,35,815/- relating to non-claimable VAT/CST amounts written off by the assessee. The Assessing Officer had rejected the claim as a bad debt. The CIT(A) also rejected the alternative claim under Section 37(1). The assessee submitted that the amount represented taxes refunded to customers upon sales returns, but the corresponding refund from the Sales Tax Department could not be obtained within the prescribed period. The Tribunal found that the loss had an inextricable and proximate nexus with the assessee’s business and arose in the ordinary course of business. Relying on judicial precedents, it allowed the claim as business loss under Sections 28/37(1).
