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TMI Blog2008 (8) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... facts giving rise to the present appeal are that the assessee had set up in-house research and development facility and incurred capital and revenue expenditure. The assessee applied to the Ministry of Science and Technology, Department of Scientific and Industrial Research (DSIR) on August 7, 2000 for approval. However, the approval was given only on February 27, 2001. In the approval letter by a note, it was mentioned that the facility approved for the purpose of section 35AB(2) was from February 27, 2001 till March 31, 2003. In the return filed by the assessee, it had claimed weighted deduction under section 35AB(2), i.e., at one and half times the expenses incurred on the entire expenditure incurred on estab-lishment of the income of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing for the Revenue has submitted that section 35AB(2) is very clear and it says that expenditure incurred on in-house research and development facility, as approved by the prescribed authorities, has to be allowed as deduction. She has further submitted that while granting approval, it was made clear that with effect from that date onwards, the approval had come into force and, hence, expenditure incurred prior to that date are not to be allowed. She has submitted that in any case, there is a question regarding interpretation of section 35AB(2) of the Act, which certainly gives rise to the question of law and it has to be determined by this court after formulating the said question. 6. We have considered the submissions made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on behalf of the assessee and took the view that the section speaks of : (i) development of facility ; (ii) incurring of expenditure by the assessee for development of such facility ; (iii) approval of the facility by the prescribed authority, which is DSIR ; and (iv) allowance of weighted deduction on the expenditure so incurred by the assessee. 9. The provisions nowhere suggest or imply that the research and deve-lopment facility is to be approved from a particular date and in other words, it is nowhere suggested that the date of approval only will be the cut-off date for eligibility of weighted deduction on the expenses incurred from that date onwards. A plain reading clearly manifests that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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