| |
| The Tax Publishers2019 TaxPub(DT) 0342 (Bang-Trib) INCOME TAX ACT, 1961
Section 35(2AB)
As Form 3CL had no legal sanctity prior to 1-7-2016, therefore, denial of weighted deduction under section 35(2AB) for the prior period for want of Form 3CL was not justified, especially in view of the fact that assessee had obtained approval in Form 3CM as required by rule 6(5A).
|
Business deduction under section 35(2AB) - Research and development expenditure - Denial of weighted deduction for want of Form 3CL -
Assessee claimed weighted deduction under section 35(2AB) in respect of expenditure incurred on in house search and development facility. AO allowed 100% deduction under section 35(1)(i) on account of absence of approval in Form No. 3CL by DSIR.Held: Prior to 1-7-2016, Form 3CL had no legal sanctity and it is only with effect from 1-7-2016 with the amendment to rule 6(7A)(b) the quantification of weighted deduction under section 35(2AB) has significance. It was not in dispute that the assessee in the instant case obtained approval in Form No. 3CM as required by rule 6(5A), therefore, deduction under section 35(2AB) had to be allowed as weighted deduction @ 200% of expenditure as claimed by the assessee and ought not to have been restricted to 100% of expenditure incurred on scientific research.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE ITAT, BANGALORE BENCH
 SUBSCRIBE FOR FULL CONTENT
|