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2022 (8) TMI 1127 - AT - Income TaxEnhanced claim of the assessee on R & D expenses u/s.35(2AB) - HELD THAT:- We observe that assessee is in R&D work for its business purposes as well as undertaking contract research. The income earned by the assessee may include income earned by the assessee for the mere services on contract research as well as certain products which is considered by the DSIR and excluded the same while approving the project and R & D expenditure for the purpose of claiming deduction u/s. 35(2AB) of the Act. This may needs detailed verification on the income earned by the assessee and it has to be segregated based on the products made by the assessee and the products emanating out of R & D services like Dossier etc., and accordingly, Assessing Officer is directed to exclude only those incomes which are in the category of dossier etc., not the product/assets and contract income. Accordingly, Ground No. 2 raised by the assessee is allowed for statistical purpose. Nature of expenditure - amount paid to Asean Patent Bureau - revenue or capital expenditure - HELD THAT:- We observe from the record that the ITAT in assessee’s own case in particular A.Y. 2011-12 [2018 (2) TMI 2081 - ITAT MUMBAI] has decided in favour of the assessee and against the revenue. Disallowance of Consultancy charges - Consultancy charges paid to the consultants for the purpose of business only, we direct the Assessing Officer to verify the genuineness of the claim and if it is within the category of other consultancy charges which this bench as allowed in Ground we direct him to allow the same
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