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2013 (9) TMI 803 - AT - Income TaxDeduction under S.35(2AB) - Grant in aid received - Amount not shown in Profit and Loss account - Held that:- CIT(A) has accepted the submissions of the assessee and the assessing officer was not confronted with the said submissions. In any case, this issue revolves around factual aspects and hence it requires only verification of books of accounts. Mere verification of books of accounts to ascertain correct facts would not cause prejudice to anybody. Accordingly, this issue of ascertaining the correct amount of grant in aid pertaining to Research and Development activity is set aside to the file of the assessing officer in order to enable him to satisfy himself about it after carrying out due verification that may be found necessary. Assessee has not treated both the “Grant in Aid” and the related “R & D expenses” as revenue items and accordingly, both the items have not been taken to the profit and loss account - issues relating to the nature of the grant in aid, the R & D expenses incurred out of the said grant in aid, eligibility of the assessee to claim weighted deduction on such expenses, the question whether it is a tied up grant or not, etc. have not been properly examined by the assessing officer. Accordingly, in our view, this issue requires fresh examination at the end of the assessing officer. Accordingly, we set aside the order of learned CIT(A) on this issue and restore the same to the file of the assessing officer with the direction to examine this issue afresh after duly addressing the submissions/claims made by the assessee and take appropriate decision in accordance with the law. Nature of grant in aid - Aid received towards Versus compensation payment - Held that:- issue may also require fresh consideration at the end of the AO. Accordingly, we set aside the order of learned CIT(A) on this issue and restore the same to the file of the assessing officer with the direction to examine the issue afresh after duly addressing the various submissions made by the assessee and decide the same in accordance with the law - matter remanded back.
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