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2018 (7) TMI 1867 - AT - Income TaxWeighted deduction u/s 35(2AB) on the clinical trials conducted outside the ‘in-house R & D facility’ - claim disallowed by A.O. on the reason that the same was not certified by Prescribed Authority (DSIR) in Form 3CL - Held that:- In the decision of Concept Pharmaceuticals Ltd [2010 (11) TMI 147 - ITAT, MUMBAI] the Coordinate Bench did not allow the expenditure spent outside the R & D unit but the Bench has not considered the explanation introduced with reference to ‘Clinical Trials’. By very nature, the Clinical Trials cannot alone be done within research facility as they require cooperation from the Medical Doctors, Hospitals, Volunteers and patients, therefore such expenditure has to be necessarily spent outside the facility, but for the purpose of ‘in-house’ research. This issue was examined by the Coordinate Bench which was subject matter of appeal before the Gujarat High Court and Gujarat High Court in CADILA HEALTHCARE LTD [2013 (3) TMI 539 - GUJARAT HIGH COURT] has approved the same. As seen from the order of the Supreme Court [2015 (11) TMI 496 - SUPREME COURT] the grievance of Revenue with reference to non-framing of three questions were considered as those three questions are considered to be ‘substantial question of law’ and referred to the Hon’ble High Court to hear the aforesaid three questions of law. However, the judgment already passed by the Gujarat High Court has not been set-aside. As Ld. CIT(A) has followed the Coordinate Bench decision, which was approved by the Gujarat High Court and as no contrary High Court judgment has been placed on record, we approve the order of the CIT (A) and reject the Revenue contentions. - Decided in favour of assessee.
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