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2017 (9) TMI 311 - AT - Income TaxDisallowing the deduction u/s. 35(2AB) - weighted deduction of 200 % R&D expenditure- rectification of mistake u/s 154 - technical defect - Held that:- The ld. CIT(A) pointed out the technical defect in Appeal with respect to filing of appeal against the order u/s 154 instead of order u/s 143(3). This technical defect was a curable defect, which does not go to alter the core issue involved in this appeal. The assessment Completed u/s 143(3) after disallowing the deduction u/s. 35(2AB) of ₹ 2,59,16,364/- representing to 200% of the expenditure incurred on R & D, as claimed by the assessee. The assessee filed application u/s. 154 before the AO, on which the AO restricted the disallowance to ₹ 1,29,58,182/- representing to 100% of the expenditure incurred on R & D on the premise that the expenses to the tune of ₹ 1,29,58,182/- stood already disallowed by assessee itself for claiming the weighted deduction under section 35(2AB).The appellant preferred an appeal before the ld. CIT(A) against the order u/s. 154, which was dismissed by the first appellate authority. The contention of the assessee is that this is despite the fact that the assessee applied for and received approval for their R&D facility as an in-house R& D facility from DSIR from the F.Y. 2011-12 and renewed till 31.03.2017. CIT(A) deem it expedient in the interest of justice to remit the case back to the file of ld. CIT(A) to decide the appeal afresh on merit of the core issue, i.e., disallowance u/s. 35(2AB) after giving reasonable opportunity of being heard to the assessee. The Assessee is directed to submit the subject approval of DSIR along with all the material/documentary evidences, which he deems fit to produce before the first appellate authority for examination and decision.appeal of Assessee is allowed for statistical purposes. .
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