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| The Tax Publishers2020 TaxPub(DT) 4951 (Karn-HC) INCOME TAX ACT, 1961
Section 35
Where Tribunal had allowed the deduction in respect of expenses incurred by the assessee on scientific research on in-house research and development facility by placing reliance on decision of High Court and since Tribunal had neither recorded any reasons nor had recorded any findings on the claim of assessee, therefore, matter was remanded back to Tribunal for decision afresh in accordance with law.
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Business deduction under section 35 - Expenditure outside the in-house R & D facility - -
Assessee was engaged in the business of manufacture of pharmaceuticals. AO completed the assessment on book profits chargeable under section 115-JB while income under normal provision was assessed. Being aggrieved, assessee filed an appeal before CIT(A) who, by an Order, partly allowed the appeal. Assessee thereupon filed an appeal before the Tribunal. Tribunal set aside the disallowance of expenditure claimed as deduction under section 35(2)(AB) which was conducted outside the in-house research and development facility. Held: From perusal of order passed by the Tribunal, it was evident that Tribunal had allowed the deduction in respect of expenses incurred by the assessee on scientific research on in-house research and development facility by placing reliance on the decision of High Court. It was pertinent to mention here that against the said decision, the revenue preferred special leave petition and the Supreme Court, by Order, dated 13-10-2015 in SLP No. 770/2015 has remitted the matter to the High Court for consideration afresh along with other issues. Since Tribunal had neither recorded any reasons nor has recorded any findings on the claim of the assessee, therefore, matter was remanded back to Tribunal for decision afresh in accordance with law.
REFERRED : CIT-I v. Cadila Healthcare Ltd. [Special Leave To Appeal (C) Nos. 770 of 2015,SLP(C) No. 771 of 2015, SLP (C)...CC No. 7684 of 2014, dt. 13-10-2015] and CIT-I v. Cadila Healthcare Ltd. (2013) 214 Taxman 672 (Guj-HC) : 2013 TaxPub(DT) 1313 (Guj-HC).
FAVOUR : Matter remanded.
A.Y. : 2010-11
IN THE KARNATAKA HIGH COURT
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