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TMI Blog2020 (1) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... certain particulars before the competent authority with DSIR on 22.12.2017 only, i.e., after a long gap i.e. about 2 years 3 months after the due date and almost at the end of the assessment proceedings U/s.143(3) for the assessment year 2015-16, which was completed on 26.12.2017. In order to claim the exemption from payment of Income Tax, the assessee has to comply with the provisions of the Act as well as the Rules made there under and establish it in RAMAKRISHNA DEO. [ 1958 (10) TMI 9 - SUPREME COURT] before the Income Tax Authorities. In this case, it is clear from the above facts and circumstances that the assessee has not laid the required material before the competent authorities in time and probably because of that they could not e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on these issues fail. - I.T.A. No. 1303/CHNY/2019 (Assessment Year: 2015-16) - - - Dated:- 3-12-2019 - SHRI DUVVURU RL REDDY, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER Appellant by: Shri G. Baskar, Advocate Respondent by: Shri J. Pavitran Kumar, JCIT ORDER PER S. JAYARAMAN, ACCOUNTANT MEMBER: The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals)-3, Chennai in ITA No.99/17- 18/A-3 dated 19.03.2019 for the assessment year 2015-16. 2. M/s. Phoenix Medical Services Pvt. Ltd., the assessee, is engaged in the business of manufacturing of engineering goods . While making the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A) and the ld.CIT(A) dismissed the appeal. Aggrieved against that order, the assessee filed this appeal. 3. The ld.AR submitted that the competent authority issued approval of in-house research and development facility U/s.35(2AB) in Form 3CM dated 07.07.2015 w.e.f. 01.04.2013 to 31.03.2015. Inviting our attention to the copy of letter filed by the assessee dated 22.12.2017, by which the assessee submitted the details of expenditure incurred on R D centre, and the copies of various e-mail communication sent by the assessee to the Ministry of Science and Technology, Department of Scientific and Industrial Research from 19.01.2018 to 22.03.2019, the ld.AR submitted that the competent authority has not responded to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions underlined therein. This form does not have any enclosure specifying a list of assessee s various in-house research and development facilities etc. Therefore, this is the first time, the assessee has sought the approval. Further, the assessee filed the return of income for the assessment year 2015-16 on 15.10.2015. Therefore, it accounts must have been audited any date before this date. As per item (c) of Sub-Clause 7A of Rule 6 of the Income Tax Rules, 1962, the company should have maintained a separate account for each approved facility, which shall be audited annually and a report of audit in Form 3CLA shall have to be furnished electronically to the Secretary, DSIR on or before the due date specified in Explanation 2 to Sub-Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y by the assessee during the previous year, which is sine qua non, and therefore, the lower authorities cannot be found fault with when the assessee has not complied with the terms and conditions of deduction claimed under sub-section 2AB of Section 35. Therefore, the ld.DR, supported the orders of the lower authorities. 4.1 With regard to the assessee s alternate claim U/s.37, the ld.DR submitted that from the particulars filed by the assessee before the Tribunal, it is seen that the R D expenses are grouped under note 18, note 20, note 21 and note 23 as on 31.03.2015, which comprises of 17 items, the total of which is ₹ 84,57,845/- under various heads. Since the Assessing Officer has not examined them, this issue may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2017 only, i.e., after a long gap i.e. about 2 years 3 months after the due date and almost at the end of the assessment proceedings U/s.143(3) for the assessment year 2015-16, which was completed on 26.12.2017. In order to claim the exemption from payment of Income Tax, the assessee has to comply with the provisions of the Act as well as the Rules made there under and establish it [35 ITR 312(SC)] before the Income Tax Authorities. In this case, it is clear from the above facts and circumstances that the assessee has not laid the required material before the competent authorities in time and probably because of that they could not entertain/consider it, etc. Therefore, the facts and circumstances of this case, as extracted above, are tota ..... X X X X Extracts X X X X X X X X Extracts X X X X
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