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2023 (8) TMI 720 - ITAT HYDERABADWeighted deduction claimed u/s 35(2AB) - expenditure incurred on bio equivalence and clinical study outside the approved facility - whether the expenditure incurred on scientific research outside the research and development facility as approved by the prescribed authority is eligible for deduction u/s 35(2AB)? - HELD THAT:- Since the activities of bio equivalence and clinical study cannot be carried out only in the laboratory of the pharmaceutical company and they have to be necessarily carried out outside the research and development facility. However, the prescribed authority approved this expenditure by incorporating the same in form 3CL. We, therefore, respectfully following the decision of Cadila Healthcare Ltd. [2013 (3) TMI 539 - GUJARAT HIGH COURT] and followed by the Co-ordinate Benches of the Tribunal, consistently, hold the issue in favour of the assessee and direct the learned Assessing Officer to delete the addition made on this account. Decided in favour of assessee. Foreign Tax Credit (FTC) - Claim denied on the ground that Form 67 shall be furnished on or before the due date specified for furnishing of the return of income under section 139(1) of the Act and on furnishing the documents specified in Form 67 - case of the assessee is that rule 128 of the tax rules was introduced w.e.f. 01/04/2017 and since it is a new provision, and first year of implementation, by inadvertence, the assessee missed to file Form 67, but it complied with such a provision immediately - HELD THAT:- This issue is no longer res integra and we find that in the case of M/s.42 Hertz Software India Pvt.Ltd. [2022 (3) TMI 834 - ITAT BANGALORE] decided an identical issue and held that FTC cannot be denied to the assessee, where the assessee filed FTC in Form 67, although belatedly since filing of such Form 67 is not mandatory but directory in nature. Decided in favour of assessee.
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