TMI Blog2014 (11) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... ority and such approval was granted on 04/03/2009, therefore, the assessee cannot be denied the claimed deduction u/s 35(2AB) of the Act merely on the ground that the prescribed authority did not submit form no. 3CL in time to the Income-tax Department. The assessee cannot be penalized for the fault, if any, of the Department. The Assessing Officer cannot be expected to be too technical rather is to take practical approach under the facts narrated hereinabove, because, it was beyond the control of the assessee to direct the authority to submit the prescribed form on Form no.3CL to the Department. Section 35(2AB) of the Act, nowhere suggest that the date of approval of research and development facility will be cut off date for eligibilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the material available on record. The fact, in brief, are that the assessee declared loss of ₹ 31,02,10,470/- in its return filed on 25/09/2009 which was subsequently revised on 11/01/2011 declaring loss of ₹ 30,80,33,675/-. Assessment was completed u/s 143(3) of the Income-tax Act, 1961 (hereinafter the Act) on 27/12/2011, determining the loss at ₹ 17,40,77,314/-. During the year under consideration, the assessee claimed research and development expenditure u/s 35(2AB) of the Act, relating to its in-house division, amounting to ₹ 16,41,80,309/-. The assessee claimed weighted deduction u/s 35(2AB) of the Act @ 150% of the capital expenses of ₹ 3,76,48,919/- and revenue expenses of ₹ 7,18,04,620/-. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... search and development facility u/s 35(2AB) of the Act on 04/03/2009 for a period from October 19, 2007 to 31st March 2010 in Form no. 3CM, in accordance with Rule 6(5A) of the Rules. This approval was produced before the Assessing Officer during assessment proceedings i.e. before framing the assessment on 30/12/2011. The prescribed authority sent Form no. 3CL to the Income-tax Department on 22nd November 2010 (A.Y. 2008-09) in accordance with section 35(2AB)(4) read with Rule 6(7A)(b) of the Rules. As the approval of the entire period was given once i.e. by way of Form no. 3M, thus, in our view, the assessee complied with the conditions for claim of deduction as required u/s 35(2AB) of the Act. We are reproducing hereunder the relevant pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the prescribed authority did not submit form no. 3CL in time to the Income-tax Department. The assessee cannot be penalized for the fault, if any, of the Department. The Assessing Officer cannot be expected to be too technical rather is to take practical approach under the facts narrated hereinabove, because, it was beyond the control of the assessee to direct the authority to submit the prescribed form on Form no.3CL to the Department. Section 35(2AB) of the Act, nowhere suggest that the date of approval of research and development facility will be cut off date for eligibility of weighted deduction under this section on expenses incurred from that date onwards; Once facility is approved, entire expenditure so incurred on development of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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