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2020 (11) TMI 708 - HC - Income TaxDeduction u/s 35(2)(AB) - expenditure outside the in-house R & D facility - Whether AO has rightly held that clinical trial expenditure is not eligible for weighted R & D deduction u/s 35(2)(AB) and it will be eligible for weighted deduction only if the expenditure is incurred on an in-house R & D facility? - HELD THAT:- Tribunal has allowed the deduction in respect of expenses incurred by the assessee on scientific research on in-house research and development facility by placing reliance on the decision of the Gujarat High Court. It is pertinent to mention here that against the aforesaid decision, the revenue preferred special leave petition and CADILA HEALTHCARE LTD. [2015 (11) TMI 496 - SUPREME COURT] has remitted the matter to the High Court for consideration afresh along with other issues. Since the Tribunal has neither recorded any reasons nor has recorded any findings on the claim of the assessee, we are left with no option but to quash the order of the Tribunal dated 16.02.2016 insofar as it pertains to claim of deduction of assessee u/s 35(2)(AB) of the Act and remit the matter to the Tribunal for decision afresh in accordance with law after affording an opportunity of hearing to the parties. Therefore, it is not necessary for us to answer the substantial question of law.
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