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2010 (4) TMI 48 - HC - Income TaxExpenditure on Scientific Research under section 35(2AB) – Research and development facility – the petitioner sought an amendment of the recognition granted to the in-house Research and Development units under Section 35 (2AB) of the said Act. In the said letter, the petitioner stated that, while it had complied with all the requirements and conditions laid down in the earlier approval and renewals granted, it had inadvertently omitted to make an application for approval of the in-house Research and Development units by filing the prescribed form No. 3CK as provided under Rule 6(4) of the Income-tax Rules, 1962 (hereinafter referred to as “the said Rules”). Consequently, alongwith the said letter dated 21.08.2008, the petitioner attached an application in Form 3CK alongwith the latest annual report for the purposes of grant of approval under Section 35 (2AB) of the said Act in respect of the in-house Research and Development units for which approval had earlier been granted - The petitioner seeks the extension of the approval to operate from the date of 01.04.2004. The learned counsel for the petitioner also submitted that the said weighted tax deduction could be claimed on all expenditure on the in-house Research and Development facility and should not have been limited only to the capital expenditure on the research and development equipment for the financial year 2007-08. - held that - in view of the guideline prescribed in clause (vi) of para 6, a beneficial provision has been made so as to extend the approval of an in-house research and development centre to the previous year, but limited only to capital expenditure (excluding any capital expenditure on land and buildings) – capital expenditures allowed from 2007-08 onwards – revenue expenditures allowed from the financial year 2008-09 i.e. the year in which agreement was entered into.
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