2008 (8) TMI 579 - HC - Income Tax

Deduction made under sec-tion 35AB(2) - assessee had set up in-house research and development facility and incurred capital and revenue expenditure - return filed by the assessee, it had claimed weighted deduction under section 35AB(2), i.e., at one and half times the expenses incurred on the entire expenditure incurred on establishment of the income of the facility - Assessing Officer held that as approval under section 35AB(2) has been granted with effect from February 27, 2001,disallowed the weighted deduction on the expenditure incurred before February 27, 2001 - approval letter by a note, it was mentioned that the facility approved for the purpose of section 35AB(2) - Held that: - entire expenditure incurred by the assessee on development of facility, if approved, has to be allowed for the purpose of weighted deduction - assessee is entitled to claim weighted deduction in respect of the entire expenditure incurred under section 35AB(2) of the Act by the assessee - Appeal is dismissed