TMI Blog2010 (2) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... <![endif]--><!--[if gte mso 10]> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0cm; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Cali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esting him to consider the clarification [which had been sought by the Income Tax Department], issued by the prescribed authority regarding the nature of activities carried on by the appellant. 3. Brief facts of the case are that the assessee company filed its return of income declaring total income at Nil after claiming deduction u/s.80IB of the Act of ₹ 1,64,10,502/-. During the assessment proceedings u/s.143[3], AO observed that the assessee company is engaged in the business of advisory/service activities in the field of pharmaceutical and healthcare products and has claimed deduction u/s.80IB of the Act. The assessee was asked to justify the claim of deduction along with the verifiable documentary evidence. Assessee vide let ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the assessee is a scientific research and development company as held by the prescribed authority, i.e. the Government of India. He drew our attention to the provisions of law u/s.80IB[8A] and also Rules 18D 18DA, to contend that it is sufficient if the prescribed authority certifies the assessee to be a scientific research and development company. He has placed before us a copy of the letter dated 29-11-2005 received from the Secretary, Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India, to the effect that the approval is granted to the company as commercial research and development company u/s.80IB by the said authority only after assessment of the research work and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstrument Co. vs. ITO 12 CTR (Chd) 501. 6. The Ld.DR, on the other hand, supported the order of the authorities below and submitted that the conditions laid down in Rule 18D and 18DA of I.T.Rules are independent of each other and the assessee has to satisfy all the conditions laid down therein. According to him, even if the prescribed authority has certified the assessee to be scientific research and development company, assessee also has to prove before the AO that it is carrying on the research and development activity and as seen from the activities of the assessee company it is only engaged in the field of providing services and not conducting research of its own. He submitted that the assessee is a contractor with no project of his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtificate. The AO or the CIT(A) for that matter cannot sit in appeal against the order of such authority. From the letter dated 29-11-05 produced by the assessee before us addressed to the ITO, we find that the prescribed authority grants the approval only after the assessment of their research work and infrastructure. Further, the initial approval has been granted for assessment years 2003-04 to 2005-06 and during the relevant assessment year it is only the renewal of the said approval which is possible only if the assessee continues to satisfy the conditions for the grant of such approval. Further, the AO in the assessee s own case for the earlier year has granted deduction u/s.80IB after considering the approval granted by the prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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