2025 (2) TMI 717 - SCH - Income Tax

Disallowance u/s 35(2AB) - clinical trial expenses incurred outside the approved facility - HELD THAT - We set aside the impugned order only insofar as the issue of disallowance under Section 35(2AB) for clinical trial expenses incurred outside the approved facility is concerned. To this limited extent Appeal 2020 (3) TMI 345 - GUJARAT HIGH COURT is remanded to the High Court of Gujarat at Ahmedabad.

Summary

The Supreme Court granted leave in the case concerning disallowance under Section 35(2AB) of the Income-tax Act, 1961 for clinical trial expenses incurred outside the approved facility. The Court set aside the impugned order specifically on this issue and remanded the appeal to the High Court of Gujarat at Ahmedabad. The appeal will be heard alongside another related case. The Court clarified that it has not expressed any opinion on the case's merits, as it is still pending before the High Court. A copy of the order will be sent to the High Court of Gujarat.