Nagravision India (P) Ltd. v. Secretary, Department of Scientific & Industrial Research

Case Laws Analysis
REFERRED CIT v. Claris Lifesciences Ltd. 2010 TaxPub(DT) 0166 (Guj-HC)

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The Tax PublishersW.P.(C) No. 5666/2020 2024 TaxPub(DT) 810 (Del-HC) IN THE DELHI HIGH COURT YASHWANT VARMA & PURUSHAINDRA KUMAR KAURAV J.J. Nagravision India (P) Ltd. v. Secretary, Department of Scientific & Industrial Research W.P.(C) No. 5666/2020 13 February, 2024 Petitioner Through by: Deepak Chopra & Dr. Abhimanyu Chopra, Advs. Respondent Through by: Jaswinder Singh, Adv. JUDGMENT *Yashwant Varma, J.* 1. This writ petition has been preferred seeking the following reliefs: - a. Issue a writ of mandamus or any other appropriate writ for quashing/amending the recognition issued by the Respondent under the provisions of section 35(2AB)(1) of the Income Tax Act, 1961 dated 29-3-2019 as well as the e-mail communications dated 28-2-2020 and 11-5-2020; b. Quash the Form 3CM dated 25-11-2019 and direct the Respondents to issue a fresh Form 3CM in respect of the R&D facilities of the Petitioner without limiting the period of claim; c. Direct the Respondents to accept the Auditors Certificate furnished in Form 3CLA by the Petitioner certifying the expenditure incurred in respect of the R&D facilities of the Petitioner for the Frinancial Year 2018-19 (relevant to assessment year 2019- 20); and d. Pass such other orders which this Honble Court may deem fit and proper on the facts and in the circumstances of the case. 2. The petitioner is essentially aggrieved by the weighted deductions claimed by it under Section 35(2AB) of the Income Tax Act, 1961(Act) in respect of expenditure incurred on the creation and establishment of an in-house Research and Development facility (R & D facility), being restricted to the period - 272- 2019 to 31-3-2020. 3. The writ petitioner contends that the stipulation of weighted deductions being eligible only from 27-2-2019 (being the date on which the research facility was approved), is wholly illegal and violative of the plain language and intent underlying Section 35(2AB) of the Act. As is evident from the reliefs claimed, the petitioner seeks deductions being granted on the entire expenditure made on the establishment and creation of the R & D facility for Financial Year 2018-19 and thus taking into account all expenditure incurred in connection therewith with effect from 1-4-2018. For the purposes of evaluating the challenge which stands raised, we deem it apposite to notice the following essential facts. SUBSCRIBE FOR FULL CONTENT

The Tax PublishersW.P.(C) No. 5666/2020
2024 TaxPub(DT) 810 (Del-HC)

IN THE DELHI HIGH COURT

YASHWANT VARMA & PURUSHAINDRA KUMAR KAURAV J.J.

Nagravision India (P) Ltd. v. Secretary, Department of Scientific & Industrial Research

W.P.(C) No. 5666/2020

13 February, 2024

Petitioner Through by: Deepak Chopra & Dr. Abhimanyu Chopra, Advs.

Respondent Through by: Jaswinder Singh, Adv.

JUDGMENT

Yashwant Varma, J.

1. This writ petition has been preferred seeking the following reliefs: -

a. Issue a writ of mandamus or any other appropriate writ for quashing/amending the recognition issued by the Respondent under the provisions of section 35(2AB)(1) of the Income Tax Act, 1961 dated 29-3-2019 as well as the e-mail communications dated 28-2-2020 and 11-5-2020;

b. Quash the Form 3CM dated 25-11-2019 and direct the Respondents to issue a fresh Form 3CM in respect of the R&D facilities of the Petitioner without limiting the period of claim;

c. Direct the Respondents to accept the Auditors Certificate furnished in Form 3CLA by the Petitioner certifying the expenditure incurred in respect of the R&D facilities of the Petitioner for the Frinancial Year 2018-19 (relevant to assessment year 2019- 20); and

d. Pass such other orders which this Honble Court may deem fit and proper on the facts and in the circumstances of the case.

2. The petitioner is essentially aggrieved by the weighted deductions claimed by it under Section 35(2AB) of the Income Tax Act, 1961(Act) in respect of expenditure incurred on the creation and establishment of an in-house Research and Development facility (R & D facility), being restricted to the period - 272- 2019 to 31-3-2020.

3. The writ petitioner contends that the stipulation of weighted deductions being eligible only from 27-2-2019 (being the date on which the research facility was approved), is wholly illegal and violative of the plain language and intent underlying Section 35(2AB) of the Act. As is evident from the reliefs claimed, the petitioner seeks deductions being granted on the entire expenditure made on the establishment and creation of the R & D facility for Financial Year 2018-19 and thus taking into account all expenditure incurred in connection therewith with effect from 1-4-2018. For the purposes of evaluating the challenge which stands raised, we deem it apposite to notice the following essential facts.