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2020 (3) TMI 540 - AT - Income TaxExemption claimed u/s 35 (2AB) - claim not made by the assessee company in its return of income for the A.Y. 201-12 - approval of expenditure for the impugned year in prescribed form has not been received from the competent authority - HELD THAT:- We find that an identical issue has been considered by the Tribunal in assessee own case for AY 2010-11 [2020 (2) TMI 508 - ITAT MUMBAI] where it has been held that once, R&D facility has been recognized by the competent authority, then deductions provided u/s 35(2AB) cannot be denied, merely for the reason that approval of expenditure for the impugned year in prescribed form has not been received from the competent authority. In view of the matter and consistent with view taken by the co-ordinate bench in assessee own case for earlier years, we are of the considered view that the Ld. AO, as well as the Ld.CIT(A) were erred in denying the benefit of weighted deductions claimed u/s 35(2AB) in respect of expenditure incurred for research and development activities in in-house R&D centers, even though the R&D facility has been recognized by the competent authority. Hence, we direct the Ld. AO to allow weighted deductions claimed by the assessee towards R&D expenditure u/s 35(2AB) - Decided in favour of assessee.
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