PCIT Vs Cadila Heathcare Limited (Gujarat High Court)
Summary: The Gujarat High Court considered the Revenue’s appeal under Section 260A of the Income Tax Act, 1961 arising from the Income Tax Appellate Tribunal, Ahmedabad ‘D’ Bench order dated 17th August, 2021 in ITA No.954/Ahd/2017 for Assessment Year 2012-13. At the outset, the Court allowed the draft amendment tendered by the Revenue to change the respondent’s name in view of the Certificate issued by the Registrar of Companies recording a change of name with effect from 24th February, 2022. The Revenue proposed nine substantial questions of law concerning, among other matters, guarantee fee of Rs.10,45,32,855/-, interest on convertible loan to ‘Zydus International Private Ltd.’ of Rs.9,97,52,504/-, export commission and TDS under Sections 40(a)(i) and 195, product registration expenditure, Trademark Registration & Patent Fee of Rs.8,60,25,625/-, Rs.39,39,31,000/- incurred outside the approved R&D facility with reference to Section 35(2AB), depreciation on a Hummer Car registered in the Director’s name, Rs.142 Crore received from M/s. Zydus Healthcare, Sikkim as “exempted remuneration”, and exclusion of Section 14A disallowance while computing book profit under Section 115JB. The Court admitted questions A to F and I because similar questions had already been admitted in Tax Appeal No.274 of 2018. Question G was dismissed because the similar question in Tax Appeal No.274 of 2018 had not been entertained, with the Court referring to Commissioner of Income-Tax v. Aravali Finlease Limited, [2012] 341 ITR 282 (Guj). Question H was admitted because a similar question, being question No.9, was already admitted in Tax Appeal No.995 of 2018. The appeal was directed to be heard with Tax Appeal No.274 of 2018 for questions A to F and I and with Tax Appeal No.995 of 2018 for question H.
