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2020 (3) TMI 422 - ITAT AHMEDABADWeighted deduction claimed u/s.35(2AB) pertaining to contract labour expenditure, professional fees and GET salary - HELD THAT:- Hon’ble Gujarat High Court in the case of CIT vs. Claries Lifescience Ltd [2008 (8) TMI 579 - GUJARAT HIGH COURT] has clearly held that once facility is approved, the entire expenditures so incurred in development of R&D facility has to be allowed for weighted deduction as provided by Section 35(2AB) Since the approval is granted during the previous year relevant to the assessment year in question, we are of the view that the assessee is entitled to claim weighted deduction in respect of the entire expenditure incurred under section 35(2AB) of the Act by the assessee. Domestic travel expenses u/s .35(2AB) - HELD THAT:- AO had not made any disallowance regarding this claim and first time the claim was made before the learned CIT(A). Therefore, we deem it proper to remit the issue back to the AO for considering the same in accordance with law. In view of the above, ground no.2 is allowed for statistical purposes. Excise duty refund as derived from the business of industrial undertaking and eligible for deduction u/s 80IB - HELD THAT:- Once the excise duty refunds has been held to be arising from manufacturing activity and is included in the profits eligible to be exempt u/.80IB of the Act, the grievance of the assessee that such receipts should have been treated as capital receipt is contradictory as by including in the P&L account and allowing the benefit under s.80IB of the Act such refunds have already been held to be revenue in nature. An item of receipt can be treated as revenue as capital depending upon its nature. The same item cannot be said to be both revenue as well as capital in nature. Disallowance u/s 36(1)(iii) - HELD THAT:- CIT(A) has made a finding of fact that interest free funds during the year had increased from the earlier year and such funds were much more than interest free advances and CWIP investments were for the purpose of business. The learned CIT(A) has therefore rightly deleted the addition
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