Case Law Details
ITO Vs Richmond Vivek Laboratories P Ltd (ITAT Hyderabad)
Learned CIT (DR) vehemently contended during the course of hearing that the CIT (A) has erred in law and on facts in deleting the impugned misc. expenditure disallowance of Rs.1,92,38,312/- despite the fact that the assessee had failed to prove the same by way of filing cogent supportive evidence before the Assessing Officer. We find no merit in Revenue’s instant grievance. There is no dispute qua the clinching fact that the assessee’s books had been duly audited and its Annual Report was also available. And that the Assessing Officer had disallowed assessee’s entire expenses in drug manufacturing business thereby enhancing its profit to the maximum level. The assessee has already explained the reason of non-production of audited books of account to the fact that there was a tenancy dispute culminating in locked up premises in the corresponding span of time. So far as the Revenue’s case that the CIT (A) deleted the impugned disallowance without verification, it has come on record that he had duly sought for a remand report from the Assessing Officer’s side. We therefore find no reason to revive the impugned disallowance going by the Revenue’s pleadings. Its sole grievance failed accordingly.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
This Revenue’s appeal for AY.2014-15 arises from the CIT(A)-3, Hyderabad’s order dated 22.07.2019 passed in appeal ITA No.0633/ITO-3(2)/Hyd/CIT(A)-3/2016-17 in proceedings u/s143(3) of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both the parties. Case file perused. None appeared at the assessee’s behest. It is accordingly proceeded ex-parte.
2. The Revenue’s sole substantive ground pleaded in the instant appeal seeks to reverse the CIT (A)’s action deleting disallowance/addition of Rs.1,92,38,312/-on account of expenditure incurred vide following detailed discussion:-
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