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TMI Blog2019 (5) TMI 1524X X X X Extracts X X X X X X X X Extracts X X X X ..... d substantial questions of law arising from the order passed by the Income Tax Appellate Tribunal dated 31.7.2008, by which the learned Tribunal upheld the order of the learned Commissioner of Income Tax (Appeals) and held that the expenditure incurred by the Assessee on Scientific Research was not entitled to weighted deduction of 1.5 times under Section 35(2AB) of the Act as the Project in question was not duly approved by the Competent Authority, however, the Asssessee, was entitled to normal deduction of 100% of expenditure incurred only under Section 35(1)(i) of the Act. 3. The learned Commissioner of Income Tax (Appeals) had discussed the above aspect in his order dated 31.10.2006 as hereunder: - "3. Deduction u/s 35(2AB) - Rs. 95, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the claim of deduction u/s. 35(1)(i) for Rs. 55,12,558/- representing R&D Revenue Expenditure and deduction u/s. 35(1)(iv) for Rs. 46,387/- representing expenditure incurred for the purchase of Camera used in R&D unit." 4. However, the Revenue took up the matter before the Tribunal which held against the Revenue on the said aspect of the matter in the following manner:- "4. After considering the rival submission carefully, we agree that Sec.35(1) as well as Sec.35(2AB) deal with the same expenditure i.e., scientific expenditure consisting of revenue and capital expenditure and only difference is that Sect.35(1) provides for allowance at normal rate i.e., actual expenditure whereas Sec.35(2AB) allows deduction to be claimed at weighted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther appeal, as the expenditure was allowed only under Section 35( l)(i) of the Act which does not require any approval by the Competent Authority. 7. Since the spending of the amount on Scientific Research itself was not even disputed by the Revenue, in our opinion, the Appellate Authorities have rightly allowed the claim under Section 35(1)(i) of the Act. The Assessee has not preferred any Appeal against that finding and therefore, the question of approval by the Competent Authority for making such claim becomes irrelevant. Therefore, we do not find any substantial question of law to be arising in the present Appeal. 8. We do not find any merit in the present Appeal filed by the Revenue and the same is liable to be dismissed and accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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