Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2020 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 942 - HC - Income TaxDeduction u/s 80IB-8A - Whether Tribunal is right in law in holding that the conditions of Rule 18DA(8A) can be looked into only by the prescribed authority and not by the AO as conditions necessary for allowing deduction u/s 80IB-8A - whether the AO is well within his jurisdiction to accept or reject the same based on the conformity adhered to by the assessee? - HELD THAT:- Once the approval is granted by prescribed authority and such approval is valid, it would be no longer be open to the Assessing Officer to verify the satisfaction of the conditions prescribed under Rule 18DA in order to refuse deduction under Sub-Section (8A) of Section 80-IB of the Act. Tribunal, in the instant case, has examined the issue on merits and has held that Rules clearly contemplate even sponsored research program and the entire receipts of the assessee are from contract research and not of own research. Any issue with regard to violation of conditions mentioned in Rule 18DA can be looked into only by the prescribed authority and therefore, the Assessing Officer erred in disallowing the deduction. Tribunal has rightly held that issue with regard to violation of conditions mentioned in Rule 18DA can be looked into only by the prescribed authority and not by the AO. Admittedly, the approval was granted to the assessee, which was renewed from time to time, therefore, the question of remand does not arise in the facts of the case. We are in respectful agreement with the view taken in case of B.A.RESEARCH INDIA LTD [2016 (6) TMI 853 - GUJARAT HIGH COURT] - Decided against revenue.
|