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2017 (9) TMI 958 - AT - Income TaxRevision u/s 263 - AO allowing deduction to the assessee u/s 35(2AB) was erroneous and prejudicial to the interest of the revenue - time limit within which application for approval in form No.3CM has to be made - Held that:- It is undisputed that Department of Scientific and Industrial Research (DSIR) granted recognition to the Assessee for the period from April 1st, 2010 to 31st March, 2019. Deduction Sec.35(2AB) read with rule 6 does not prescribe any time limit within which application for approval in form No.3CM has to be made. Once approval is granted by DSIR the same would apply till it is revoked. In the case of Claris Lifesciences Ltd. [2008 (8) TMI 579 - Gujarat High Court] and Sadan Vikas (India) Ltd. [2011 (2) TMI 66 - DELHI HIGH COURT] have taken the view that on a plain and harmonious reading of rule 6(5A) and Form No. 3CM it would be appropriate to come to a conclusion once a research facility is approved, the entire expenditure so incurred on development of R&D facility has to be allowed for weighted deduction as provided by s. 35(2AB). In the light of above it cannot be said that the order of the AO was erroneous. Even if it were to be said that the view taken by the Courts and Tribunal are not correct, the said views were a possible view. Once the view taken by the AO is either correct or a possible view then the CIT in exercise of his powers u/s.263 of the Act cannot hold the order of the AO to be erroneous just because he does not agree with the view of the AO. Appeal of the Assessee is allowed.
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