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2018 (2) TMI 429 - AT - Income TaxDeduction u/s.80IB - calculation of claim - expenses claimed as deduction for calculating net profit for Silvassa Unit – II - Held that:- AO failed to point out any direct nexus of the alleged common expenditures to have been incurred for Silvassa Unit – II and also did not pointed out any defect in the allocation statement prepared by the assessee for expenses claimed as deduction for calculating net profit for Silvassa Unit – II. We therefore set aside the findings of the ld. CIT(A) and allow ground 1, 2 and 3 of the Assessee and direct the Assessing Officer to allow the deduction u/s.80IB of the Act as claimed by the assessee in its return of income. Disallowance of weighted deduction u/s.35(2AA)- Held that:- Assessee has been unable to produce Form 3CI as contemplated in Rule 6(6) of the I. T. Rules. In this circumstances we are unable to accept assessee’s plea of allowing weighted deduction of 175% of the amount paid. However, we intend to accept the assessee’s alternate plea of allowing the deduction of expenditure of ₹ 2,20,800/- paid by the assessee to National Laboratory. From perusal of Form 3CH (Rule 6(6) of the I.T. Rule) which is an order of approval of scientific research programme placed in Paper Book, we find that the assessee has paid ₹ 2,20,800/- through cheque No.265292 dated 22.11.2010. We therefore accept the assessee’s alternate plea and allow the expenditure of ₹ 2,20,800/- as against ₹ 3,86,400/- claimed by the assessee.
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