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2023 (3) TMI 392 - ITAT MUMBAIWeighted deduction u/s 35(2AB) in respect of capital expenditure - AO has made disallowance on the ground that the said amount has not been approved by the DSIR - HELD THAT:- AO has relied upon the proviso to section 35(2AB)(1) of the Act which was applicable to the assessment years beginning on or after April 1, 2021. Whereas the appeal before us pertains to the assessment year 2017-18. As it is clear that an assessee is allowed to claim deduction of a sum equal to two times the expenditure incurred on scientific research (not being expenditure in the nature of cost of any land or building). It is admitted position that DSIR had approved capital expenditure of INR 14,33,000. Therefore, the appellant was, in our view, entitled to claim deduction of INR 28,66,000 being two times the amount of capital expenditure of INR 14,33,000 approved by the DSIR and incurred by the appellant during the relevant previous year. Accordingly, addition of INR 14,33,000 made by the Assessing Officer and confirmed by the Commissioner of Income-tax (Appeals) is deleted. Assessee appeal allowed.
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