ACIT Vs Unimed Technologies Ltd. (ITAT Ahmedabad)
Unimed Technologies Ltd., engaged in manufacture & trade of pharmaceuticals, faced four disallowances in reassessment—(i) ₹55.53 lakh for post-slump-sale loss, (ii) ₹7.46 lakh employees’ PF contribution delay, (iii) ₹14.49 lakh software expenses, & (iv) ₹4.18 crore consultancy fee for US-FDA approval.
CIT(A)’s order: Allowed software & consultancy expenses as revenue; upheld PF & slump-sale loss disallowances. Both Assessee & Department appealed.
Assessee’s Appeal Pro-rata loss ₹55.53 lakh:
ITAT found AO’s disallowance based purely on presumption that expenses for 25-31 Mar 2017 (after slump sale to Sun Pharma) were claimed by Assessee. As Assessee produced agreement, audited accounts & affidavit showing all post-transfer income/expenses booked by purchaser, Tribunal remanded the issue for factual verification by AO. Allowed for statistical purposes.
PF deposit ₹7.46 lakh:
Since 15 Jan 2017 fell on Sunday & payment was made on 16 Jan 2017, Tribunal held—invoking Section 10 of General Clauses Act, 1897 & rulings in G.D. Foods (152 taxmann.com 323, Del Trib) & SREI Equipment Finance (178 taxmann.com 427, Kol Trib)—that payment on next working day is deemed timely. Disallowance deleted.
Revenue’s Appeal Software expenses ₹14.49 lakh:
AO treated as capital; CIT(A) allowed u/s 37(1). ITAT upheld CIT(A), following its own ruling in Assessee’s AY 2016-17 & Danfos Industries (P) Ltd. (284 Taxman 475, Madras HC)—annual software licences for operational use are revenue in nature.
