| |
| The Tax Publishers2020 TaxPub(DT) 0919 (Mum-Trib) : (2020) 183 ITD 0050 : (2020) 205 TTJ 0679 INCOME TAX ACT, 1961
Section 35(2AB)
What was relevant to decide eligibility for weighted deduction under section 35(2AB) is existence of R&D facility and recognition of such facility by competent authority. Once facility had been approved by competent authority, then there is no cut-off date prescribed for approval of such facility and benefit of deduction under section 35(2AB) had to be given to assessee as long as recognition was in force. Therefore, denial of weighted deduction claimed under section 35(2AB) was not justified.
|
Business deduction under section 35(2AB) - Research and development expenditure - Denial for want of approval of R&D facility by competent authority--R&D facility duly recognized by DSIR -
Assessee claimed weighted deduction for R&D expenditure under section 35(2AB), in respect of amount incurred for R&D. AO denied deduction claimed under section 35(2AB), on the ground that, although, the R&D facilities were recognized by the DSIR, but R&D facility had not been got approved from competent authority and necessary approval. Form 3CM was not available for the concerned assessment year in 2010-11. Held: What was relevant to decide eligibility for weighted deduction under section 35(2AB) is existence of R&D facility and recognition of such facility by competent authority. Once facility had been approved by competent authority, then there is no cut-off date prescribed for approval of such facility and benefit of deduction under section 35(2AB) had to be given to assessee as long as recognition was in force. Therefore, denial of weighted deduction claimed under section 35(2AB) was not justified.
Followed:CIT v. Claris Lifesciences Ltd. (2010) 326 ITR 251 (Guj) : 2010 TaxPub(DT) 166 (Guj-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
IN THE ITAT, MUMBAI BENCH
 SUBSCRIBE FOR FULL CONTENT
|