IN THE ITAT AHMEDABAD BENCH ‘A’
ACIT v. Torrent Pharmaceuticals Ltd.
IT APPEAL NOS. 1869 & 1881 (AHD.) OF 2009
[ASSESSMENT YEAR 2005-06]
MAY 31, 2012
ORDER
Kul Bharat, Judicial Member
These are cross-appeals – one filed by the Revenue and another filed by the assessee are directed against the common order of Ld. Commissioner of Income-tax (Appeals)-XIV, Ahmedabad dated 27-03-2009 for the assessment year 2005-06.
First we take up Revenue’s appeal in ITA No.1869/Ahd/2009.
2. The Revenue has raised following grounds of appeal:-
“1. The Ld. CIT(A) has erred in law and on facts in deleting the disallowance of garden expenses of Rs. 27,06,563/-.
2. The Ld. CIT(A) has erred in la and on facts in deleting the disallowance of Weighted expenditure on R & D expenses of Rs. 1,03,25,000/-“
3. The facts in brief are that assessee-company is engaged in the business of manufacturing of pharmaceutical items. The assessee-company has filed its return of income declaring total income of Rs. 12,79,35,253/-. Subsequently, the case was selected for scrutiny and the assessment proceedings was initiated by issuing notice u/s.143(2) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). The assessment proceeding was completed on 28-12-2008. The Assessing Officer made following disallowances:-
