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Issues involved: Appeal challenging order, non-compliance with Section 250(1) and 250(2) of IT Act, deletion of deduction u/s 35(1)(iv) of the Act.
Appeal of the Revenue - Section 250(1) and 250(2) Compliance: The Revenue appealed the order of the first appellate authority, alleging non-compliance with Section 250(1) and 250(2) of the IT Act, 1961. The Revenue contended that the Assessing Officer was not provided notice and an opportunity. However, it was observed that the assessee responded to notices, submitted relevant documents, and the Revenue failed to prove otherwise. The Tribunal found no merit in the Revenue's contentions and dismissed the grounds. Deletion of Deduction u/s 35(1)(iv) of the Act: The Revenue challenged the deletion of an addition made on account of disallowance of deduction claimed u/s 35(1)(iv) of the Act. The Revenue argued that the claimed deduction was wrongly allowed without proper research by the assessee. However, the Tribunal noted that the Assessing Officer did not disallow a similar claim in a previous assessment year. The Tribunal emphasized that if expenditure is incurred for scientific research related to the business, it qualifies for deduction, regardless of other benefits. The Tribunal cited relevant case laws to support its decision. The Tribunal upheld the deletion of the disallowance, as the research done by the assessee benefitted the public, meeting the conditions for deduction. Cross-objection No.61/Ind/2013: The cross-objection filed by the assessee was in support of the impugned order. Since the Tribunal affirmed the conclusions of the impugned order, the cross-objection was considered academic and dismissed as infructuous. In conclusion, both the appeal of the Revenue and the cross-objection of the assessee were dismissed by the Tribunal.
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