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2022 (7) TMI 864 - AT - Income TaxDeduction u/s 35 (2AB) - Allowability of R & D expenditure - HELD THAT:- CIT(A) noted that the income from contract research has been offered for taxation, the cost of contract research has not been claimed by the assessee for weighted deduction. The expenditure incurred by the assessee for mahapae unit were properly used by the above expenditure on contract research work, the Sinnar unit has nothing to do with the same. AO is incorrect in reducing the income of contract research activity from the eligible claim. Certain judicial precedent including the decision of Hon'ble Karnataka High Court [2016 (4) TMI 219 - KARNATAKA HIGH COURT] was followed. He has also dealt with the issue that after the income and expenditure are adjusted it would amount to double taxation of income. In the result, we do not find any infirmity in the order of the learned CIT(A) in deleting the disallowance of deduction under Section 35(2AB) of the Act. Accordingly, the solitary ground of appeal raised by the learned Assessing Officer is dismissed.
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