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TMI Blog2013 (11) TMI 1704X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of Section 250(1) and 250(2) of the I.T. Act, 1961 in not providing notice to the Assessing Officer and consequent opportunity to him. 2. During hearing, the crux of arguments advanced on behalf of the Revenue is identical to the grounds raised and on the other hand, the learned Counsel for the assessee defended the impugned order. 2.1 We have considered the rival submissions and perused the material available on record. We note from the assessment order itself that pursuant to notices, issued to the assessee, the assessee duly responded and also filed written submissions to the query, raised during assessment proceedings along with profit and loss account, balance sheet, books of accounts, bills, vouchers for verification and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the A.O. I have carefully perused the return of income, assessment order and tax audit report in Form 3CD for the A.Y. 2007-08 and 2009-10. I do find that the appellant had made similar claim in A.Y. 2007-08 and the Assessing Officer had not disallowed the same in the scrutiny assessment. The Assessing Officer had not brought on record any corroborative reason to reject the claim of the appellant during the year under consideration. 12. I am convinced that the nature of the activity carried out by the appellant falls within the phrase "scientific research", particularly for the reason that the definition of the term "scientific research" is inclusive, and that the said scientific research is in connection with the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r benefits to the assessee or enure to the benefit of a third party. In order to get the benefit of deduction in respect of capital expenditure, incurred on scientific research, it will suffice that the expenditure is really incurred during the relevant previous year. As long as the expenditure is of capital nature and it is used for scientific research relating to the business carried on by the assessee, such deduction cannot be denied. The ratio laid down in the decisions in CIT v. Sandoz (India) Ltd. [1994] 206 ITR 385 (Bom.), CIT v. Keen Pesticides (P.) Ltd. [1998] 97 Taxman 306 (Ker.), CIT v. Yamuna Digital Electronics (P.) Ltd. 238 ITR (AP) supports our view. Expenditure on scientific research is allowable as a deduction under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h are useful for public at large though such benefits enures to a third party. In every situation, it cannot be said that the scientific research done by govt. agencies can only be said a research. Any research even done through private sector will definitely be covered under scientific research. Before providing the exemption u/s 35 of the Act, the activity/research activity of an individual are thoroughly examined by the competent authority and then such approval is granted. Where it is not allowable, it has been specifically explained by adding provisos and explanations as is evident from the Act itself by inserting suitable amendments from time to time. The Central Govt., before granting approval under clause (ii) or clause (iii), call ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than, under intimation to C-WET and State Nodal Agencies, thus, the assessee company, apart from rendering technical services to its clients, did research in the field of development of WPP at its own and incurred expenditure of ₹ 51,41,440/-. This factual matrix was not controverted by the Revenue with the help of any positive material. Since the research done by the assessee is used for the benefit of public, therefore, we find no infirmity in the conclusion drawn by the ld. CIT(A). We affirm the same. 4. Now, we shall take the Cross-objection No.61/Ind/2013. The learned Counsel for the assessee broadly pointed out that it is in support to the impugned order. Since we have affirmed the conclusion drawn in the impugned order, it has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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