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2018 (12) TMI 1497 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - Held that:- Admittedly, no disallowance has been made on account of interest expenditure by Assessing Officer, accepting the plea of assessee that no interest cost was attributable to tax free investments made by assessee. AO worked out disallowance under Rule 8D(2)(iii) of the Rules after recording satisfaction under section 14A(2). The assessee on its own motion had disallowed ₹ 39,76,231/-, so it is not the case where no disallowance is to be made in the hands of assessee. The provisions of Rule 8D(2)(iii) of the Rules are clearly applicable to the year under appeal and once the same are attracted, then the disallowance, if any, has to be computed as per the said Rule. AO has computed the said disallowance at ₹ 61,34,350/- and disallowed differential amount of ₹ 21,58,119/-. We find no merit in the plea of assessee in this regard and dismissing the same, we uphold the disallowance made by AO. - Decided against assessee Disallowance of weighted deduction of expenditure incurred on in-house research & development activities under section 35(2AB) - Held that:- The issue arising before us is similar to the issue in Cummins India Ltd. Vs. DCIT [2018 (5) TMI 1314 - ITAT PUNE] and following the same parity of reasoning, we hold that where facility has been recognized by the prescribed authority and agreement has been entered into between facility and the prescribed authority and thereafter the role of Assessing Officer is to look into and allow the expenditure incurred on in-house R&D facility as weighted deduction under section 35(2AB) - No merit in the orders of authorities below in restricting weighted deduction claimed under section 35(2AB) on the ground that DSIR had not approved the said expenditure. It may be pointed out herein itself that reasons for not approving expenditure have also not been made available to the assessee. Consequently, the same cannot be basis for curtailing deduction claimed under section 35(2AB) of the Act. The Assessing Officer is thus, directed to allow weighted deduction under section 35(2AB)
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