TMI Blog2014 (2) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... e, till such time, the assessee is approved as a Research and Development Organisation - the assessee is entitled to deduction under S.80IB of the Act – Decided in favour of Assessee. - ITA No.1053/Hyd/2013 - - - Dated:- 6-2-2014 - Shri D. Manmohan And Shri B. Ramakotaiah,JJ. For the Appellant : Shri I.Rama Rao For the Respondent : Shri P. Somasekhara Reddy DR ORDER Per D.Manmohan, Vice President: This appeal by the assessee is directed against the order dated 23rd April, 2013, passed by the Commissioner of Income-tax(Appeals) III, Hyderabad, and it pertains to assessment year 2008-09. 2. Following grounds are urged by the assessee- "1. The Order of the Commissioner of Income-tax(Appeals) III, Hyd dated 23.04.2013 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticed that as per the service agreement, the assessee company receives income irrespective of whether there is success in the research undertaken or not, and thus, activity of the assessee is in the nature of job work only, and thus, since the primary condition of carrying on scientific research and development is not fulfilled, the Assessing Officer rejected the deduction, apart from other reasons. 4. The learned CIT(A) confirmed the action of the Assessing Officer, by observing that the assessee is not engaged in research, which may lead to discovery of any new molecule/drug or in development of any new technologies. The entire research is conducted by the various pharmaceutical companies, and what is done by the assessee is the adminis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was thus clear that deduction under S.80IB cannot be denied to the assessee, till such time, the assessee is approved as a Research and Development Organisation. The learned counsel submitted that the issue thus, stands squarely covered by the said decision, since there is no change in facts for the year under consideration. 7. The Learned Departmental Representative , on the other hand, fairly admitted that though the Assessing Officer and the CIT(A) were justified in taking a view that it is for the assessee to prove that it was carrying on research activity, the fact remains that the issue is covered by the decision of the ITAT (supra) in assessee's own case for the earlier years. 8. We have carefully considered the rival submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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