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TMI Blog2022 (8) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable to the facts of the present case. The facts in case law of Hon ble Gujarat High Court in CIT V/s Claris Life sciences Ltd.[ 2008 (8) TMI 579 - GUJARAT HIGH COURT] were quite identical wherein it was noted that that DSIR approval was only from 27.02.2001 to 31.03.2003 but the assessee claimed weighted deduction for entire expenses as incurred during the year. The claim was allowed by Ld. AO w.e.f. 27.02.2001. However, Tribunal allowed the claim for the whole of the year - Thus we direct Ld. AO to grant full deduction to the assessee. - Decided in favour of assessee. - ITA No. 1887/Chny/2018 - - - Dated:- 3-8-2022 - HON BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON BLE SHRI MANOJ KUMAR AGGARWAL, AM Appellant by : Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5.1 The learned Commissioner of Income Tax (Appeals) erred in concluding that the AO was justified in restricting the claim based on the certificate issued by the DSIR in form 3CL. 5.2 The learned CIT(A) ought to have appreciated that in order to claim weighted deduction, the expenditure should have been incurred in connection with in-house development and though the approval of DSIR is required to claim the weighted deduction, there is no fetter that the deduction will be curtailed to the period as specified in Form 3CL. 5.3 The learned CIT(A) erred in relying the decision of the Karnataka High Court in the case of Tejas Network Ltd Vs DCIT (2015) 60 (Taxman.com 309) , when the jurisdictional High Court in the case of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in manufacturing of Pharmaceutical products. The assessee had arrangement of in-house research and development facility which was eligible for weighted deduction of 200% u/s. 35(2AB) of the Act. The assessee incurred revenue expenditure of Rs.273.65 Lacs and another Rs.10.62 Lacs in the nature of capital expenditure. As per the extant provisions of Section 35(2AB) of the Act, the assessee was eligible to claim 200% weighted deduction for aggregate amount of Rs.284.28 Lacs. 3.2 However, upon perusal of Form 3CL issued by DSIR (prescribed authority), it was noted that though the entire capital expenditure of Rs.10.62 Lacs was allowed by DSIR, however, the revenue expenditure was allowed only to the extent of Rs.48.42 Lacs. The clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e procedure as prescribed u/s 35(2AB) r.w.r. 6(7A). Upon perusal of Form No.3CL (as extracted in para-12 of the impugned order), it was noted that eligible recurring expenditure was mentioned as Rs.48.42 Lacs. Thus, the prescribed authority has allowed / certified only Rs.48.42 Las on account of revenue expenditure. The decision of Hon ble Madras High Court in the case of CIT Vs Wheels India Limited (2011) 336 ITR 513, as relied upon by the assessee, was held to be distinguishable since the question therein was whether the assessee s activities would fall within the ambit of Sec.35(2AB) or not. In that case law, the question was whether the benefit could be granted in respect of periods prior to the date of notification of the Board. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holding that de hors any specific dates specified in the certificate of the prescribed authority, namely DSIR, once the prescribed authority approved the existence of research and development facility and the expenditure incurred on such scientific research, the assessee would be entitled for the expenditure incurred for the whole of the assessment year and cannot be granted in a truncated manner. The facts in case law of Hon ble Gujarat High Court in CIT V/s Claris Life sciences Ltd. (supra) were quite identical wherein it was noted that that DSIR approval was only from 27.02.2001 to 31.03.2003 but the assessee claimed weighted deduction for entire expenses as incurred during the year. The claim was allowed by Ld. AO w.e.f. 27.02.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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