Zydus Hospira Oncology Private Limited Vs PCIT ( ITAT Ahmedabad)
ITAT Ahmedabad held that order passed by PCIT under section 263 of the Income Tax Act without discussing or rebutting any of the arguments taken by the assessee is in gross violations to the principles of natural justice and hence the same is liable to be set aside.
Facts- During the examination of the assessment records, PCIT observed that the assessee had claimed an exemption of Rs. 59,98,80,918 u/s. 10AA of the Income Tax Act. PCIT was of the view that the assessee had included Revenue from operations and “other income” while calculating the claim u/s. 10AA of the Act. The “other income” included export incentives, which were part of government schemes like Duty Drawback and the sale of Duty Entitlement Pass Book (DEPB) licenses. PCIT was of the view that the export incentives and other income claimed by the assessee were not eligible for the exemption u/s. 10AA. PCIT was of the view that the assessee had claimed excess exemption under Section 10AA by a sum of Rs. 7,08,83,828. This excess exemption was due to the inclusion of non-eligible income, like export incentives which were part of government schemes like Duty Drawback and the sale of Duty Entitlement Pass Book (DEPB) licenses, in the calculation of 10AA claim. Consequently, PCIT was of the view that order passed by AO was erroneous and prejudicial to the interests of the Revenue and hence was directed to be set aside.
