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2021 (9) TMI 161 - AT - Income TaxDeduction of research and development expenses u/s. 35(2AB) - Scope of amendment to sub-section (3) of section 35 - grant of approval for deduction u/s. 35(2AB) with the office of DSIR - HELD THAT:- As relying on decision of Sun Pharmaceutical Ind. Ltd.[2017 (8) TMI 933 - GUJARAT HIGH COURT] and amendment to sub-section (3) of section 35 w.e.f. 1-04-2016 for furnishing of report, we consider that there is nothing before us on hand differs from the cases cited (supra) so as to take a different view on this issue - since the issue on hand being squarely covered following the principle of consistency, we find merit in the submission of the assessee and allowed the claim of deduction. Therefore, this ground of appeal is allowed. Disallowance of commission u/s. 40A(2)(b) - AO disallowed the expenditure incurred on payment of commission to persons specified u/s. 40A(2)(b) stating that assessee has failed to establish the genuineness of the expenditure - HELD THAT:- As observed that during the course of assessment, the assessee has explained the specific services rendered by the parties to whom the commission was paid along with the detail of their expenses and TDS on the transaction of commission payment - assessee placed copies of invoices raised by the commission agent, along with ledger account, acknowledgement of income tax return for A.Y. 2013-14 - assessee has also enclosed the copies of I.T. returns filed by these parties showing the amount of commission earned in their return of income - AO has not made any further verification, investigation and examination from the parties to whom the sales were made through the commission agents to disprove the facts reported by the assessee in its submission - AO has not demonstrated any material or information gathered to disprove the genuineness of the expenditure incurred on commission payment - Decided in favour of assessee.
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