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2013 (11) TMI 168 - AT - Income TaxAllowability of Deduction Claim u/s 80IB (4) - Held that:- The assessee was eligible for deduction under the sub-section (4) of sec.80-IB of the Act, on all the article/things (including those mentioned in 11th schedule) manufactured by it - The assessee was located in the State of Pondicherry, which is in an industrially backward State - In also make no difference whether the undertaking is a SSI or not - In fact, the assessee claimed deduction under the sub-section (4) of sec.80-IB of the Act. Once, the industrial undertaking is located in an industrially backward State the assessee is eligible for deduction u/s.80-IB(4) of the Act - In such a situation there was no need to fulfill the requirements of 'SSI' nature - If the assessee wanted to claim deduction u/s.80-IB of the Act, being in the nature of 'SSI' (i.e. if wants to claim exception as per the first limb of proviso to clause(iii)), then only the assessee had to prove that it was recognised as a SSI and all the relevant conditions were fulfilled. As the assessee's industrial undertaking was 'located in an industrially backward State' of Pondicherry, there was no need to fulfill the requirements of SSI - The assessee was eligible for deduction u/s.80-IB(4) of the Act - The CIT(A) had given well reasoned and categoric finding with respect to eligibility of the assessee for claiming deduction under section 80IB – Decided against Revenue. Claim of Deduction u/s 35(1)(i) - Held that:- The assessee had incurred expenditure on the research and development activity in relation to its own business - Therefore, the assessee was eligible for deduction under section 35(1)(i) of the Act - Relying upon CIT Vs. U.P. Electronics Pvt. Ltd. [2005 (2) TMI 57 - ALLAHABAD High Court] - As per the provisions of section 35(1)(i), the only requirement for claiming deduction was that the amount should have been spent during previous year on research and development in relation to assessee’s own business only - It was not the case of the assessee or the Revenue that the assessee was contributing amount towards another organization engaged in research and development. The deduction claimed by the assessee under section 35 of the Act towards in house expenditure on scientific research - the assessee had submitted that it had been spending huge amount on research and development of new products and to improve the existing ones - The contention of the assessee was that since the assessee was spending money on research and development facility in its own unit and was related to its own business, no approval from the prescribed authority for claiming deduction under section 35 of the Act was required – Decided against Revenue.
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