M/s. Orchid Pharma Ltd. v. The Assistant Commissioner of Income Tax
Parties Involved
Facts Summary
The assessee, M/s. Orchid Pharma Ltd., filed its return of income on 30.11.2013 declaring total income of ₹.29,51,39,990/- and a revised return of income was filed on 12.03.2014 declaring a loss of ₹.266,04,86,669/-. The scrutiny assessment was completed by making addition of ₹.59,98,34,478/- on account of disallowance under section 37 of the Act [₹.34,11,081/-], disallowance under section 35(2AB) [₹.36,61,73,213/-], disallowance under section 36(va) of the Act [₹.17,12,37,289/-] and prepaid finance charges [₹.5,90,12,895/-]. The assessee preferred an appeal before the Commissioner of Income Tax (Appeals) and the penalty levied under section 271(1)(c) of the Act at ₹.15,00,00,000/- was confirmed by the Commissioner of Income Tax (Appeals). The assessee raised a plea that the demand is to be taken as NIL in view of the NCLT order in assessee’s case dated 27.06.2019. The assessee argued that the NCLT approved resolution plan setting the operational creditors including income-tax at NIL. The Commissioner of Income Tax (Appeals) did not adjudicate the above plea of the assessee for the reason that, since the said plea of the assessee is not emanating from the order under appeal or from the grounds preferred on it, held that the plea is beyond the scope of the appeal filed before the Commissioner of Income Tax (Appeals).…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the penalty levied under section 271(1)(c) of the Act is justified in the facts and circumstances of the case.
Judgment Outcome
Decided in favour of Assessee.
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