TMI Blog2010 (11) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... tence of research and development facility and the expenditure incurred on such scientific research, the assessee would be entitled for the expenditure incurred for the whole of the assessment year and cannot be granted in a truncated manner. - 978 of 2010 - - - Dated:- 23-11-2010 - F.M. Ibrahim Kalifulla and N. Kirubakaran, JJ K. Subramaniam for the Appellant R. Venkatanarayanan for Subbaraya Aiyar Padmanabhan for the Respondent JUDGEMENT F.M. Ibrahim Kalifulla, J: The Revenue has come forward with this appeal. The appellant seeks to raise as many as three substantial questions of law, which are as under: "i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in quashing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd any scope to entertain this appeal, inasmuch as we find that the order of the Tribunal in holding that once the CBDT issued a Notification dated 21.9.2004 notifying automobiles including automobile components, as article or thing for the purpose of Clause (1) of Sub Clause (2AB) of Section 35 of the Income Tax Act, 1961, such benefit provided under the said Section should enure to assessee for the whole of the assessment year and cannot be restricted from the date of Notification, is sustainable. 3. When the Commissioner of Income Tax in exercise of powers under Section 263 of the Act sought to revise the order of the assessing authority relied upon the Certificate issued by the prescribed authority, namely DSIR, wherein it was mention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure so incurred on development of the research and development facility has to be allowed for weighted deduction as provided by section 35AB(2). The Tribunal has also considered the legislative intention behind the above enactment and observed though the to boost the research and development facility in India, the Legislature has provided this provision to encourage the development of the facility by providing deduction of weighted expenditure. Since what is stated to be promoted was development of facility, the intention of the Legislature by making the above amendment is very clear that the entire expenditure incurred by the assessee on development of facility, if approved, has to be allowed for the purpose of weighted deduction." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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