R&D Deduction Denied; Interest Expense Allowed; Capital Loss & Bad Debt Disallowances Upheld; Commission Payments Reviewed &D.

Deduction u/s 35(2AB) for in-house Research and Development (R&D) expenses was disallowed as the assessee failed to properly explain the basis of claim and reconcile the difference between the amount claimed and the expenditure approved by the Department of Scientific and Industrial Research (DSIR). The matter was remitted to the Assessing Officer to correctly verify the eligible expenditure without considering the DSIR-approved amount. The disallowance of interest expenses u/s 36(1)(iii) was deleted as the assessee had sufficient interest-free funds available from reserves and share premium, contrary to the Assessing Officer's presumption that only interest-bearing funds were utilized towards capital work-in-progress (CWIP). The disallowan..... .....

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