Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 1541 - AT - Income TaxDeduction u/s 35(2AB) - whether no in house scientific research has been carried out by the appellant? - claim of the assessee rejected on the basis that the assessee has not separately shown expenditure for in-house research & development - Held that:- From the details of expenses, it is seen that the amount was paid to ARAI, Pune and for purchasing certain items from the market from various parties. Merely getting approval from ARAI and purchasing certain material from the market cannot be said to be carrying out in-house research & development activity. In our considered opinion, research & development means to carry out research to find out some new technology or new equipment or product and that should be carried out inhouse as per the requirement of section 35(2AB) of the Act. From the details made available to us, it has not come out that any research & development activity was carried out by the assessee and therefore, the assessee is not eligible for weighted deduction u/s 35(2AB) of the Act. - Decided against assessee. Disallowance of Benevolent expenses - the expenditure cannot be said to have been laid wholly and exclusively for the purpose of business - Held that:- In view of this Factory Order Part-II dated 20/01/2001, it cannot be said that the expenses incurred by the assessee company on account of death relief to the employee, is not business expenditure and, therefore, the disallowance made by the Assessing Officer and confirmed by Learned CIT(A) on this basis is not justified. But still we feel that the details of collection from the employees and the contribution by the employer are to be examined by the Assessing Officer because the same was not examined by him in view of his outright rejection of the assessee’s claim. Though the details were brought on record before us but the same could not be reconciled and therefore, we feel it proper that for this limited aspect, the matter should go back to the file of the Assessing Officer for fresh decision. We accordingly set aside the order of Learned CIT(A) on this issue and restore the matter to the Assessing Officer for fresh decision. - Decided in favour of assessee for statistical purposes.
|