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2017 (10) TMI 1417 - AT - Income TaxWeighted deduction u/s. 35 (2AB) - R&D expenditure incurred by the assessee towards research and development in its in-house R&D - whether Laboratory is Recognized by Department of Scientific & Industrial Research, Government of India? - Held that:- The provisions of section 35(2AB) provides for weighted deduction of 200% on research and development expenditure incurred by the assessee in its in-house R&D facility, if such R&D facility has been prescribed I Rules 6(1B), 6(4), 6(5A) and 6(7A) of the Income-tax Rules, 1962. As per the rules, the assessee has to make an application in prescribed form with necessary evidences along with agreement with the competent authority. The competent authority, having satisfied with the conditions prescribed under the Act, can approve the R&D facility in prescribed form 3CM with intimation to the department through proper channel. In this case, the facts with regard to the assessee's R&D expenditure and recognition from the competent authority are not doubted by the lower authorities. The only dispute is with regard to the period of approval. As per the certificate issued by the competent authority in Form 3CM assessee's R&D facility has been approved for the period from 01- 04-2011 to 31-03-2013 on the basis of application filed by the assessee in prescribed form 3CK on 12-08-2011. Therefore, we are of the view that the assessee is not entitled for weighted deductions towards its R& expenditure for the assessment year under consideration. - Decided against assessee.
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