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2022 (10) TMI 117 - AT - Income TaxDeduction u/s 10AA - Disallowance for the reason that the assessee had filed return of income belatedly and not within the time limit prescribed u/s 139(1) - AO has disallowed the claim of deduction u/s 10AA for the solitary reason that the return of income was not filed within the specified due date u/s 139(1) - HELD THAT:- Hon’ble High Court of Delhi has applied this doctrine of interpretation of Scott R.Bayman v. Commissioner of Income-tax, Delhi [2012 (8) TMI 646 - DELHI HIGH COURT] and referred to the above mentioned judgment of the Hon’ble Apex Court. When the Legislature has omitted such a restriction in section 10AA in its wisdom, it is not for the A.O. nor the CIT(A) to prescribe such a conditionality and impose it on an assessee. Therefore, the denial of the exemption on the ground of not filing the return of income within the specified due date u/s 139(1) of the I.T.Act is not legally correct. Since the A.O. had disallowed the claim of deduction u/s 10AA of the I.T.Act, at threshold for reason that the assessee has not filed the return of income u/s 139(1) we are of the view that the matter needs to be examined whether the assessee has complied with any other conditions mandated u/s 10AA - A.O. shall also examine whether the assessee has correctly computed the claim CIT(A) in the impugned order has stated that the assessee has claimed excess deduction u/s 10AA. Deduction u/s 35(1)(i) - expenditure on scientific research - HELD THAT:- The details with regard to expenditure claimed u/s 35(1)(i) was disallowed by the A.O. for the reason that the assessee has failed to furnish the details of the claim. The assessee had debited to Profit and Loss account under the 'other expenses’. The details of the 'other expenses’ are placed on record filed by the assessee. However, the bifurcation/schedule of the 'product development expenses’ has not been provided. The assessee is now claiming the benefit of deduction u/s 37 of the I.T.Act and the details of the said claim is not before the Tribunal. Therefore, in the interest of justice and equity, we are of the view that the matter needs to be examined afresh by the A.O. The assessee shall provide the necessary details of bifurcation and explain the nature of expenditure - It is ordered accordingly. Hence, 2 is allowed for statistical purposes.
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