Case Law Details
Panexcell Clinical Lab Pvt. Ltd. Vs ACIT (ITAT Mumbai)
ITAT find that the assessee is in the business of drug analysis, clinical trials, and other research activities and as part of the said business, the assessee does lab study of various drugs before their launch in the market. As per the assessee, for the purpose of such lab study, the assessee conducts the trial on various persons, who acts as a volunteer and as a consideration, the assessee pays such volunteers in cash. During the hearing, reliance was placed upon cash vouchers of drug analysis expenses, forming part of the paper book from pages No. 214 – 245. From the perusal of said vouchers, we find that the said vouchers mention the volunteer centre ID, the amount paid, and the signature of the volunteer on the date of payment. The learned AR submitted that the names of the volunteers are not mentioned to maintain anonymity regarding the identity of the volunteer and instead the ID No. is mentioned in the record. It was also submitted that this manner also safeguards the interest of the pharmaceutical company, whose drugs are tested. On a careful perusal of these vouchers, it is evident that the same cannot be called self-made, since these vouchers also contain the signatures of different volunteers acknowledging the receipt of payment in cash on different dates. In absence of any other allegation, we find no basis for confirming the disallowance upheld by the learned CIT(A). Accordingly, we direct the AO to delete the disallowance in respect of drug analysis expenses
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The present appeal has been filed by the assessee challenging the impugned order dated 01/09/2017, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals)–24, Mumbai, [“learned CIT(A)”], for the assessment year 2014–15.
2. In its appeal, the assessee has raised the following grounds:–
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