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TMI Blog2013 (11) TMI 1541X X X X Extracts X X X X X X X X Extracts X X X X ..... ent activity. In our considered opinion, research & development means to carry out research to find out some new technology or new equipment or product and that should be carried out inhouse as per the requirement of section 35(2AB) of the Act. From the details made available to us, it has not come out that any research & development activity was carried out by the assessee and therefore, the assessee is not eligible for weighted deduction u/s 35(2AB) of the Act. - Decided against assessee. Disallowance of Benevolent expenses - the expenditure cannot be said to have been laid wholly and exclusively for the purpose of business - Held that:- In view of this Factory Order Part-II dated 20/01/2001, it cannot be said that the expenses incurred b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... research has been carried out by the appellant. Moreover, the expenditure incurred is for certification purposes. 2. Because the Learned CIT(A) did not apply his mind in understanding the concept of Benevolent expenses and erred in facts and law in confirming the disallowance of ₹ 7,91,600/- by stating that the expenditure cannot be said to have been laid wholly and exclusively for the purpose of business." 2. Regarding ground No. 1, it was submitted by Learned A.R. of the assessee that the details of the expenses in respect of scientific research is available on page No. 8 of the paper book. For the sake of ready reference, these details are reproduced below: S.No. Particulars Amount (Rs.) Amount (Rs.) Amount paid to ARAI Pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44,58,241.58 2.1 A query was raised by the Bench that from these details of expenses, how it comes out that these expenses are incurred for in-house research & development as required the provisions of section 35(2AB) of the I.T. Act. In reply, it was submitted by Learned A.R. of the assessee that approval was obtained properly and, therefore, it has to be accepted that the expenses are incurred for in-house research & development. 3. Learned D.R. of the Revenue supported the orders of the authorities below. 4. We have considered the rival submissions, perused the material available on record and have also gone through the orders of the authorities below. We find that the claim of the assessee was rejected by the authorities below on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the employees and the assessee was required to contribute the matching amount and such amount was required to be given to the legal heir of the deceased employee. He submitted that when some relief is allowed to a deceased employee and its dependent, it has to be accepted that this is for business purpose. A query was raised by the Bench regarding the amount collected by the assessee from employees and contribution made by the assessee company, in reply, the Learned A.R. of the assessee has submitted certain details but he could not reconcile the same in respect of collection from the employees and the contribution from the employer. 6. Learned D.R. of the Revenue supported the orders of the authorities below. 7. We have considered the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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