Lumis Biotech Pvt Ltd Vs DCIT (ITAT Mumbai)
In the case of Lumis Biotech Pvt Ltd vs. DCIT (ITAT Mumbai), the assessee appealed against the order of the National Faceless Appeal Centre (NFAC), which upheld the disallowance of weighted deductions for research and development under Section 35(2AA) and the addition of Rs. 6,03,970 due to non-deduction of tax. The Assessing Officer (AO) disallowed a deduction of Rs. 1,36,40,254 for lack of supporting documents and also disallowed 30% of certain expenses due to non-deduction of TDS, leading to an assessed total income of Rs. 1,56,46,605. The assessee’s appeal to the CIT(A) was dismissed, prompting a further appeal to the ITAT. During the hearing, the assessee’s representative argued that due to the COVID-19 pandemic, necessary documents could not be submitted on time, and additional evidence was rejected by the CIT(A). The ITAT considered these arguments, noting the significance of the additional evidence and the need for fair consideration of the facts. Consequently, the ITAT set aside the CIT(A)’s order and remanded the case back to the AO for a fresh examination, directing that the additional evidence be considered and the matter be adjudicated anew, with the assessee given an adequate opportunity for representation. The appeal was allowed for statistical purposes.
