TMI Blog2016 (1) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... maniyam, CA For The Respondent : Dr. B Nischal, JCIT ORDER PER N.R.S.GANESAN, JUDICIAL MEMBER This appeal of the assessee is directed against the order of the Commissioner of Income-tax (Appeals)-VI, Chennai, dated 30.8.2013 and pertains to assessment year 2005-06. 2. Shri M. Balasubramaniyam, ld. Representative for the assessee submitted that the assessee claimed deduction u/s 35(2AB) of the Act to the extent of ₹ 1,25,32,197/-. According to the ld. Representative, the assessee owns an in-house Research Development Facility. Referring to the assessment order, the ld. Representative submitted that the Assessing Officer rejected the claim of the assessee on the ground that the assessee has not obtained the appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. Representative submitted that like in the present case, the assessee before the Hyderabad Bench of this Tribunal has not obtained any approval as required u/s 35(2AB) of the Act from the prescribed authority. The Hyderabad Bench found that the assessee cannot be denied deduction claimed u/s 35(2AB) of the Act merely on the ground that the prescribed authority has not submitted report in Form 3CL. On a query from the Bench for the purpose of claiming deduction u/s 35(2AB) of the Act, the assessee has to obtain approval in Form 3CM from the Secretary to the Government of India, Department of Scientific Industrial Research, whether such approval was obtained in writing in Form 3CB or not, the ld. Representative clarified that no such ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch approval as required in Rule 6(5A) r.w.s 35(2AB) of the Act, according to the ld. DR, the assessee is not eligible for deduction u/s 35(2AB) of the Act. 4. We have considered the rival submissions on either side and also perused the material available on record. We have also carefully gone through the provisions of sec. 35(2AB) of the Act which reads as follows: Expenditure on scientific research. 35. (1) In respect of expenditure on scientific research, the following deductions shall be allowed- [(2AB) (1) Where a company engaged in the business of biotechnology or in any business of manufacture or production of any article or thing, not being an article or thing specified in the list of the Eleventh S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of India. However, for the purpose of deduction u/s 35(2AB) of the Act, the prescribed authority is Secretary to Government of India, Department of Scientific Industrial Research. Since the letter was signed by a Scientist, this may be from the office of the Principal Scientific Adviser for the purpose of claiming deduction u/s 35(2AA) of the Act. Therefore, the so called approval which is available at pages 94 and 95 of the paper book, cannot be construed as approval granted u/s 35(2AB) of the Act by the Secretary to the Government of India. Form 3CM clearly indicates that the approval has to be signed by the Secretary to Government of India, Department of Scientific Industrial Research. The power was not delegated to any other aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antifies at a lesser amount, then the deduction claimed by the assessee should be modified accordingly. Therefore, the issue before the Hyderabad Bench of this Tribunal is not approval granted by the competent authority but the issue of certification in Form 3CL. Therefore, this Tribunal is of the considered opinion that the decision of the Hyderabad Bench of this Tribunal is not applicable to the facts of this case. Similarly, in the case before the Mumbai Bench of this Tribunal in Meco Instruments P. Ltd (supra), the approval in Form 3CM was granted with effect from 1.4.2007 to 31.3.2011. The Tribunal further found that the application of the assessee for earlier assessment year was processed, however, no order was passed. Referring to pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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