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2014 (10) TMI 171 - AT - Income TaxCondonation of delay - Delay of 396 days Managing director of company undergone a surgery Held that:- The MD of assessee-company was suffering from a serious disease pertaining to heart problem and ultimately had to undergo open heart surgery - such lapse on the part of the MD is understandable - A person recuperating from a disease like heart problem must be still under some stress and strain and for that reason many official acts and deeds required to be done quite possibly might have escaped his attention as decided in N BALAKRISHNAN Versus M. KRISHNAMURTHY [1998 (9) TMI 602 - SUPREME COURT OF INDIA] - every lapse on the part of a litigant cannot be a reason enough to turn down his plea and shut the door against him unless the explanation smack of mala-fides or it is put forth as part of a dilatory strategy - there exists a genuine cause for not preferring the appeal in time by the assessee thus, this is a fit case for delay to be condoned delay condoned. Deduction u/s 35(2AB) R&D expenses - Manufacturing and sale of pesticides, bio-fertilisers and organic manures Whether non-availability of the approval in the prescribed form for the relevant assessment year could disentitle the assessee of deduction u/s. 35(2AB) or not - Held that:- Following the decision in ACIT Versus Meco Instruments P. Ltd. [2010 (8) TMI 484 - ITAT, MUMBAI] - Expenses were incurred by assessee towards R & D activity as AO himself has allowed 100% of the amount as deduction - once the R & D facility is approved, the entire expenditure incurred for R & D facility has to be allowed towards weighted deduction u/s. 35(2AB) of the Act - assessee's R & D facility having been approved by the prescribed authority and there being no dispute to the fact that assessee has incurred the expenditure towards R & D activities, the deduction claimed u/s. 35(2AB) by the assessee cannot be denied merely on the ground that prescribed authority has not submitted report in Form 3CL - when no show-cause notice has been issued to assessee for rejection of its application, assessee's application for approval of expenditure should be deemed to have been approved by the prescribed authority thus, the AO is directed to allow weighted deduction u/s. 35(2AB) Decided in favour of assessee. Deduction u/s. 80JJA Held that:- AO has allocated R & D expenditure to both organic and nonorganic manure segments on the sole consideration that the other expenses are allocated to both the segments - it is the claim of assessee that R & D expenditure is only confined to non-organic segment - Considering the nature of dispute and also the fact that assessee needs to establish its claim by producing adequate evidence, the matter is to be remitted back to the AO for re-consideration Decided in favour of assessee.
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