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2019 (8) TMI 1524 - AT - Income TaxDisallowance of deduction u/s 35(2AB) - assessee company is engaged in the business of production and procuring of vegetable, fruits and flower seeds from local as well as overseas market and sells them in Indian as well as export market - assessee is also engaged in production and processing of hybrid seed - HELD THAT:- Assessee company is engaged in the business of production and procuring of vegetable, fruits and flower seeds from local as well as overseas market and sells them in Indian as well as export market. Assessee is also engaged in production and processing of hybrid seeds. Assessee has set up Research and Development facility to cater to the requirements of agricultural sector. The assessee claimed deduction u/s. 35(2AB) in respect of R & D facilities. R & D center of the assessee is approved by DSIR. However, the claim of assessee was disallowed by the Assessing Officer on the ground that as against the assessee’s claim of weighted deduction of ₹ 9,85,70,330/-, the DSIR has approved ₹ 6,25,52,000/-. The contention of the assessee is that during the period relevant to assessment year under appeal DSIR has no power to quantify the deduction claimed by assessee u/s. 35(2AB). The only requirement is the recognition of R & D facility by DSIR. We find that the issue raised in the appeal is squarely covered by the decision rendered in the case of Cummins India Ltd. Vs. Deputy Commissioner of Income Tax [2018 (5) TMI 1314 - ITAT PUNE]. After considering the undisputed facts of the case and the decisions of the Co-ordinate Bench on the issue, we uphold the findings of CIT(Appeals) in allowing assessee’s claim of weighted deduction u/s. 35(2AB) of the Act.
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