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2019 (9) TMI 404 - ITAT MUMBAIDeduction u/s 35(2AB) - claim denied as assessee not furnished the approval of expenditure by DSIR in Form no.3CL - CIT-A allowed claim - HELD THAT:- Commissioner (Appeals) makes it clear that, though, taking note of Form no.3CL filed by the assessee he has concluded that the assessee is eligible to claim deduction under section 35(2AB) of the Act in respect of expenditure approved by the DSIR, however, he has made it clear that such deduction is subject to verification of Form no.3CL by the Assessing Officer. Commissioner (Appeals) has given opportunity to AO to verify Form no.3CL before allowing deduction under section 35(2AB). It is relevant to observe, in pursuance to the directions of Commissioner (Appeals), AO has not only verified the approval granted in Form no.3CL by the DSIR but having found the expenditure claimed by the assessee to be genuine has allowed deduction u/s 35(2AB). Commissioner (Appeals) has not violated the provisions of rule 46A. As regards the contention of the Revenue in respect of R & D expenditure amounting to ₹ 15.31 lakh, we fully agree with the learned Commissioner (Appeals) that though the assessee may not be eligible to claim deduction under section 35(2AB) of the Act with regard to such expenditure, however, it certainly can claim deduction of such expenditure as business expenditure. This is for the simple reason that the Assessing Officer has never doubted the genuineness of the expenditure claimed by the assessee. - Decided against revenue
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