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TMI Blog2024 (12) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... fied by the prescribed authority i.e. DSIR. Prior to 01-04-2016, there was no such requirement for quantification of the eligible expenditure by the DSIR for claiming the deduction. Merely because DSIR had quantified such expenditure in the current year, which is prior to 01-04-2016, the same was not binding on the revenue authorities. Revenue was not correct in restricting the deduction u/s. 35(2AB) of the Act on the basis of the amount quantified by the DSIR in their approval. Disallowance u/s. 35(2AB) of the Act as upheld by the ld. CIT(A) was not in accordance with the provisions of law. Therefore, assessee is eligible for deduction @ 200% of the actual expenditure incurred on scientific research on in-house research and development fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he disallowance u/s 35 (2AB) to the extent of Rs. 7,19,878/- 2. In law and in the facts and circumstances of the Appellant's case the Ld CIT ought to have appreciated that the total R D expenditure incurred by the appellant was of Rs 36,70,578/- and accordingly the deduction available to the appellant u/s 35 (2AB) was of Rs. 73,41,156/-. He has failed to appreciate that as held by the different decisions of ITAT Ahmedabad and decision of Gujarat High Court cited before him, once the R D facility is approved by DSIR the entire expenditure incurred on such facility is eligible for deduction u/s 35 (2AB) 2.1 The Department has not disputed the incurring of expenditure as shown by the appellant on R D facility and therefore, there is no que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 7,19,878/- against which the assessee is in present appeal. 5. Shri Biren Shah, ld. Counsel of the assessee submitted that identical issue was involved in assessee s own case in the Assessment year 2014-15 and 2015-16 decided by the ITAT in ITA No. 468 and 469/Ahd/2022 dated 23-08-2023 and the relief was allowed to the assessee. The ld. Departmental Representative on the other hand supported the order of the lower authorities. 6. We have carefully considered the rival submissions. A copy of the ITAT order in assessee own case cited supra as relied upon by the assessee has been brought on record. It is found that this issue was also involved in assessment year 2014-15 and 2015-16 and the Co-ordinate Bench of this Tribunal had analyzed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibed authority was not required in law to quantify the amount of expenditure incurred on in-house research and development facility, such quantification, if any done by the prescribed authority in Form No 3CL was not required to be taken cognizance of by the Revenue authorities and the assessee is entitled to claim weighted deduction on all expenditure incurred by it, on in-house research development facility Therefore, we agree with the contentions of the Id counsel for the assessee, before us that in the impugned year involved before us, the Revenue has erred in restricting the claim of weighted deduction under section 35(2AB) of the Act to the extent approved by the prescribed authority i.e. DSIR In view of the above, we direct the AO to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. 8. In the result, the appeal of the assessee is allowed. ITA No. 582/Ahd/2020 A.Y. 2017-18 9. The assessee has taken the following grounds in this appeal;- 1. The Ld CIT (A) while appreciating the fact that the R D facility has been approved by DSIR erred in holding that the weighted deduction should be determined on the basis of quantum of expenditure approved in Form No 3CL and the balance expenditure was to be considered as per the provisions of the Income Tax Act. 2. The Ld CIT (A) further erred in holding that in respect of clinical trial/research expenditure, weighted deduction will not be allowed and it will be allowed only as revenue expenditure. 2.1 The Ld CIT (A) has failed appreciate that once the assessee has incurred ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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