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2019 (6) TMI 32 - AT - Income TaxDeduction u/s 35(2AB) - claim of weighted deduction on Research & Development expenditure - HELD THAT:- As decided in EICHER MOTORS LTD. VERSUS CIT [2017 (9) TMI 1043 - DELHI HIGH COURT] u/s 35 (2AB), both revenue and capital expenditure are allowable in their entirety, excluding expenditure in the nature of cost of any land or building. There was going to be no purpose served in analysing whether the expenditure was of revenue or capital nature. In fact, the AO himself had allowed 100% of the expenditure both of revenue and capital nature and the disallowance was only the additional 50% amount which, again, the CIT (A) had found and correctly so, in the opinion of this Court, ought not to have been disallowed - no hesitation in holding that the Assessee is entitled to the full benefit of Section 35 (2AB) . Also confirmed by EICHER MOTORS LTD [2018 (9) TMI 1328 - SC ORDER] - Decided in favour of assessee. Addition on account of provision for warranty - HELD THAT:- We find that similar disallowances were made by the Assessing Officer in A.Ys 2003-04 to 2009-10 and in A.Y 2010-11. The disallowances were deleted by the CIT(A) and the revenue did not prefer any appeal till A.Y 2008-09. In A.Ys 2009-10 and 2010-11, dispute relating to similar disallowances travelled upto the Tribunal and the Tribunal has decided the issue in favour of the assessee and against the revenue in [2016 (1) TMI 1076 - ITAT DELHI] assessee had estimated the provisions for warranty on the basis of past history. The estimate of warranty made by the assessee on the basis of past history cannot be treated as a provision for any ascertained liability and allowed the provision for warranty as deduction. Thus no infirmity or perversity in the findings returned by Ld. CIT(A) in allowing the ascertained liability as allowable expenditure u/s 37( 1).- Decided in favour of assessee.
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