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2019 (5) TMI 112 - HC - Income TaxWeighted deduction of expenditure incorporated u/s 35 (2AB) - expenditure was incurred by the Assessee on Scientific Research - mandatory condition of producing the approval for the Assessment Year in question was not complied with - HELD THAT:- Allowability of weighted deduction to the Assessee u/s 35 (2AB) since the requisite approval for the project on which expenditure was incurred by the Assessee on Scientific Research was approved for the period prior and even subsequent to AY 2003-2004. The said condition of approval stood substantially complied with. Assessee had contended before the authorities below that approval from the Ministry concerned of the Central Government for the year in question was also under active consideration and awaited. Assessee cannot be punished for the bureaucratic delay in giving such approval for the year in question, which was in the hands of the Department concerned of the Central Government itself. On the very fact that for the period anterior and posterior to the year in question such approval was very well on the record of the Revenue, the weighted deduction for the expenditure incurred on the Scientific Research could not have been disallowed by the authorities below and, therefore, Tribunal, in our view, rightly held such Scientific Research expenditure to be allowable under Section 35 (2AB). - Decided in favour of the Assessee and against the Revenue. Levy of Interest u/s 234D - HELD THAT- Computation of interest will depend upon the appeal effect order to be passed, the quantum of net payment is to be determined accordingly, after allowing weighted deduction under Section 35 (2AB) . The provisions of Section 234D have been held applicable for Assessment Year 2003-2004 in question in terms of the decision of the Co-ordinate Bench of this Court in the case of Fisher Sanmar Ltd. [2014 (4) TMI 236 - MADRAS HIGH COURT] . - Decided in favour of the Revenue and against the Assessee.
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