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TMI Blog2024 (11) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... year assessee has received sum as soft loan on similar terms and conditions as entered into tripartite agreement during the impugned assessment year. Further the Ministry of Science and Technology has also confirmed that the funds provided by them is in the nature of soft loan and not a grant-in-aid for the earlier loan taken by the assessee. Since the terms and conditions of the tripartite agreement are identical for both the assessment years the argument of the AR deserves consideration. The assessee has categorized the amount received from DSIR as unsecured loans in their financial statements which was not disputed by the revenue. AR also submitted a copy of invoice wherein interest on the repayment of the loan has been disclosed and co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 147 r.w.s. 144 of the Income Tax Act, 1961 (in short Act ) dated 22.11.2018. 3. Brief facts of the case are that, assessee-company M/s. Arrdy Engineering Innovations Private Limited formerly known as M/s. ARDEE Technologies Pvt Ltd., is engaged in the business of production and sale of temperature molten metal, quality measurement equipment. Assessee filed its return of income for the A.Y. 2012-13 and the assessment was completed under section 143(3) of the Act on 26.03.2015 determining the total loss of Rs. 44,92,050/-. Assessee paid taxes under the provisions of section 115JB of the Act. Subsequently, on verification of records it was found that the assessee-company had entered into an agreement with Department of Scientific Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in five equal instalments and hence claim made under section 35(2AB) of the Act shall be allowed. On perusal of the submissions made by the assessee, Ld. CIT(A) dismissed the appeal of the assessee, stating that assessee is giving the shadow of colour of loan to the amount received from DSIR in order to claim excess deduction under section 35(2AB) of the Act. 5. Being aggrieved by the order of the Ld. CIT(A), assessee is in appeal before us by raising following grounds of appeal: - 1. The order of the learned Commissioner of Income Tax (Appeals) is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income Tax (Appeals) ought to have quashed the notice issued u/s 148 of the Act as inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that similar loan was taken in the year 2005 wherein the Department has allowed the deduction claimed under section 35(2AB) of the Act. Further he also referred to the financial statements wherein amount received from DSIR being categorised as unsecured loans. He therefore pleaded that these are repayable loans and hence eligible for weighted deduction under section 35(2AB) of the Act. Ld.AR further submitted letter from Ministry of Science and Technology for the earlier loan obtained during the year 2005 wherein it is categorically mentioned as soft loan and not a grant-in-aid. The Ld.AR contended that similar to the loan granted in the year 2005, assessee received Rs. 1.93 crores soft loan during the impugned assessment year and hence el ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he earlier loan taken by the assessee. Since the terms and conditions of the tripartite agreement are identical for both the assessment years the argument of the Ld. AR deserves consideration. Further the assessee has categorized the amount received from DSIR as unsecured loans in their financial statements which was not disputed by the revenue. Further, Ld.AR also submitted a copy of invoice dated 17.07.2014 wherein interest on the repayment of the loan has been disclosed and consequently tax has been deducted at source on the interest paid. In the light of the facts and circumstances as discussed above, we are of the considered opinion that the assessee has taken a soft loan which is repayable in five equal instalments cannot be considere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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