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2022 (9) TMI 829 - AT - Income TaxDisallowance being weighted deduction u/s 35(2AB) - Claim of assessee towards revenue expenditure being consultation fees which were actually in the form of remuneration and the entire R & D activities were carried out in the appellant company’s premises - whether claim of Appellant u/s 35(2AB) cannot be allowed without certification by the DSIR? - HELD THAT:- We find that neither before the A.O nor before the ld. CIT(A) the assessee was able to substantiate the claim of revenue expenditure.It is not apparent either from the order of the ld. A.O or from the ld. CIT(A)’s order what relevant evidences/materials were provided by the assessee in order to substantiate its claim for weighted deduction u/s 35(2AB) - Whether the assessee was able to justify the alleged consultancy services paid to the concerned three professionals and whether those can be brought within the status of in-house research and development facilities, no such evidence is apparent in the orders of the subordinate authorities and whether at all, the assessee had submitted such evidences before them. As It is not apparent either from the order of the ld. A.O or from the ld. CIT(A)’s order what relevant evidences/materials were provided by the assessee in order to substantiate its claim for weighted deduction u/s 35(2AB) of the Act. Whether the assessee was able to justify the alleged consultancy services paid to the concerned three professionals and whether those can be brought within the status of in-house research and development facilities, no such evidence is apparent in the orders of the subordinate authorities and whether at all, the assessee had submitted such evidences before them. Thus matter should be restored to the file of the ld. A.O for adjudication as per law and as prayed for by the assessee. They should provide all evidences/documents to substantiate their claim of weighted deduction u/s 32(2AB) of the Act before the ld. A.O - Appeal of the assessee is allowed for statistical purposes.
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