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IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH

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204 ITA-265-2009 (O&M)

Date of Decision: 05.02.2026

COMMISSIONER OF INCOME TAX ...Appellant

Vs.

M/S GLAXO SMITHKLINE CONSUMER HEALTHCARE LTD.

…Respondent

CORAM:- HON'BLE MR. JUSTICE JAGMOHAN BANSAL

HON'BLE MR. JUSTICE AMARINDER SINGH GREWAL

Present:- Ms. Urvashi Dhugga, Sr. Standing Counsel with

Mr. Vaibhav Gupta, Jr. Standing Counsel and

Ms. Kavita, Advocate for Income Tax

Mr. Rohit Jain, Advocate (through V.C.) and

Mr. Abhishek Sharma, Advocate for the assessee

***

JAGMOHAN BANSAL, J. (ORAL)

1. The appellant through instant appeal under Section 260A of the

Income Tax Act, 1961 (for short ‘1961 Act’) is seeking setting aside of order

dated 21.03.2007 passed by Income Tax Appellate Tribunal, Chandigarh (for

short ‘ITAT’).

2. The appellant has raised following questions for adjudication by

this Court:-

i. Whether on facts and in the circumstances of the case, the

ITAT is right in law in treating the expenditure incurred on

product development as revenue expenditure, when the

purpose of the expenditure & its intended reality is to obtain

benefit of enduring nature?

ii. Whether on the facts and in the circumstances of the case, the

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ITAT was right in holding that Excise Duty will not form part

of "total turnover" while computing deduction u/s 80HHC?

iii. Whether on the facts and in the circumstances of the case the

ITAT was right in law in allowing the deduction u/s 80-I of the

1961 Act, in as much as the machinery had been installed in the

same

iv. Whether on the facts and in the circumstances of the case, the

ITAT is correct in law in holding that interest on capital

borrowed for acquisition of new machinery and overhead

expenses incurred during trial run period in expansion of its

existing business are expenses of revenue nature?

v. Whether on the facts and in the circumstances of the case, the

ITAT is correct in law in holding that expenditure incurred on

implementation of the new ERP package, an input to take

business decisions and which results into carrying on business

more efficiently and smoothly, cannot be said to be an

advantage accruing in the capital field?

vi. Whether on the facts and in the circumstances of the case, the

ITAT was right in law in upholding the order of the CIT (A) in

deleting the addition made on account of change in the method

of valuation of closing stock in respect of excise duty?

3. Learned counsel for the parties are ad idem that question No.1

raised by appellant stands answered by this Court vide order dated

04.02.2026 passed in ITA-267-2009, question No.2 is covered by order dated

27.01.2026 passed in ITA-645-2008, questions No.3 and 4 are covered by

order dated 19.01.2026 passed in ITA-269-2009, question No.5 is covered by

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order dated 05.02.2026 passed in ITA-271-2009 and question No.6 is covered

by order dated 27.11.2025 passed in ITA 62 to 65 of 1995.

4. The questions raised by appellant are answered in terms of

aforesaid orders of this Court.

5. Pending application(s), if any, stands disposed of.

(JAGMOHAN BANSAL)

JUDGE

(AMARINDER SINGH GREWAL)

JUDGE

February 05, 2026

Deepak DPA

Whether Speaking/reasoned Yes/No

Whether Reportable Yes/No

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