TMI Blog2011 (2) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... ishnan, Advocate A.K. Sikri, J. (ORAL) CM No.3499/2011 For the reasons stated in the application, delay in filing the appeal is condoned. The application is disposed of. ITA No.348/2011 1. The assessee claims that it is engaged in the business of manufacturing of automotive air conditioning and is also undertaking research and development activity in this behalf. In the assessment year, i.e., assessment year 2005-2006, the assessee claimed a deduction of ₹ 3,83,62,003/- under Section 35 (2AB) of the Income Tax Act (hereinafter referred to as the Act ). The business expenses incurred are naturally allowed as deductions, however, the aforesaid provisions gives weighted deduction to the assessees, who are engaged int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal has relied upon the judgment of Gujarat High Court in Commissioner of Income Tax v. Claris Lifesciences Ltd., 326 ITR 251. We have gone through the aforesaid judgment of the Gujarat High Court and find that Gujarat High Court detailed in no-uncertain terms that the cut-off date mentioned in the certificate issued by the DSIR would be of no relevance. What is to be seen is that the assessee was in indulging in R D activity and had incurred the expenditure thereupon. Once a certificate by DSIR is issued, that would be sufficient to hold that the assessee fulfills the conditions laid down in the aforesaid provisions. The discussions, which is undertaken by the Gujarat High Court while interpreting the aforesaid provisions, is extracted bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of facility. The Tribunal has also considered Rule 6(5A) and Form No. 3CM and come to the conclusion that a plain and harmonious reading of Rule and Form clearly suggests that once facility is approved, the entire expenditure so incurred on development of R D facility has to be allowed for weighted deduction as provided by Section 35(2AB). The Tribunal has also considered the legislative intention behind above enactment and observed that to boost up 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, intention of the legislature by making above ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
