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2018 (10) TMI 2000 - AT - Income TaxWeighted deduction u/s.35(2AB) - R & D expenditure - HELD THAT:- The act does not place any restrictions to incur the expenditure. The expenditure incurred for the purpose of scientific research required to be allowed as deduction u/s.35(AB) subject to complying the conditions laid down in Rule 6. The expenditure was incurred by the assessee which is certified by the tax audit report. There is no dispute regarding the actual amount incurred by the assessee. The decisions relied upon by the Ld.AR are not directly related to the issue of R&D expenditure incurred over and above the specified limit of DSIR, but the essence of the judgments relied upon by the Ld.AR suggests to allow the actual expenditure. There is no dispute regarding the genuineness of expenditure. Therefore, we hold that the assessee is entitled for the weighted average deduction on the amount actually spent. Decided in favour of assessee. Disallowance of carry forward additional depreciation in respect of assets acquired in the preceding assessment year - HELD THAT:- It is not disputed that the claim of the assessee was on the balance of the additional depreciation remaining after what was availed on assets acquired during the preceding assessment year. As relying on Brakes India Ltd [2017 (4) TMI 511 - MADRAS HIGH COURT] we direct the AO to allow the claim of the balance additional depreciation. Additional depreciation on an air circulator - Claim disallowed by the lower authorities considering it to be electrical installation - HELD THAT:- There is nothing on record to show that electrical installation on which additional depreciation was claimed by the assessee was an air circulator which could be construed as plant and machinery. Accordingly, we are of the opinion that lower authorities were justified in denying the claim of additional depreciation on the said item. We do not find any reason to interfere with the orders of the lower authorities. Proportionate disallowance on the deduction claimed by the assessee u/s.10B - AO charged a part of the R & D expenditure to the units on which assessee was claiming deduction u/s.10B - claim of the assessee was that R & D unit was a separate one and its expenses could not be charged to the units on which deduction was claimed u/s.10B - HELD THAT:- As decided by Hon’ble Apex Court in [2016 (12) TMI 881 - SUPREME COURT] though Section 10A, as amended, is a provision for deduction, the stage of deduction would be while computing the gross total income of the eligible undertaking under Chapter IV of the Act and not at the stage of computation of the total income under Chapter VI. Decided against revenue. TDS u/s 195 - Disallowance u/s.40(a)(i) - logistic service charges paid to a Non Resident - HELD THAT:- As in assessee’s own case for assessment years 2007-08 to 2009-2010 [2017 (5) TMI 1749 - ITAT CHENNAI] the profits of the services rendered outside India cannot be taxed in India unless the non-resident has permanent establishment/or business connection in India as envisaged in Sec.9(1) - CIT(A) deleted the addition correctly relying on the decision of GE Technological Centre Pvt. Ltd [2010 (9) TMI 7 - SUPREME COURT]. Depreciation at the rate of 60% on UPS - HELD THAT:- CIT (A) was justified in allowing the claim of depreciation at the rate of 60% on UPS.
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