TMI Blog2015 (4) TMI 1247X X X X Extracts X X X X X X X X Extracts X X X X ..... 01.2008 the nodal officer from the department of Scientific & Industrial Research had accorded the recognition upto 31.03.2010. However all these facts require verification. Hence, this issue is set aside to the file of the AO. Appeal as filed by the assessee is treated as allowed for statistical purposes. - ITA No. 3464/Mum/2012 - - - Dated:- 21-4-2015 - SHRI B R BASKARAN, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER For the Appellant : Dr Jayant M Ranade For the Respondent : Shri Pavan Kumar Beerla ORDER PER VIVEK VARMA, JM: Appeal has been filed by the assessee against the order of CIT(A) 22, Mumbai, dated 22.02.2012, wherein, the following grounds have been raised: 1. On the facts and in the ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Act 1961, on the expenses incurred by it. 6. While completing the assessment u/s 143(3), the AO disallowed the weighted deduction of ₹ 1,46,08,8821- (150% of ₹ 97,39,254/-) claimed by the assessee under section 35(2AB) of the Income Tax Act 1961. However the AO allowed the deduction of ₹ 97,39,2541- under section 35(1)((i) of the Income tax Act, 1961. 4. While disallowing the deduction, the AO observed, Perusal of the details of R D expenditure shows that the same has been incurred and related purely to electricity, office expenses, rent, manpower expenses and includes conveyance , incentive, travel expenditure etc. In the instant case, the assessee has not furnished any evidence to establish that it has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, Department of Scientific and Industrial Research . In addition the assessee has to furnish copy of form no. 3CM duly signed by the Secretary DSIR who is prescribed authority in the DSIR. As given in the action point in Form No. 3CM the prescribed authority shall if he is satisfied that the conditions provided in this rule and in sub sec 2AB of s. 32 are fulfilled pass the order in writing in form no.3CM. Thus furnishing of form no. 3CM duly signed by Secretary DSIR is a prerequisite for availing deduction u/s 35(2AB) which has been not satisfied by the assessee. Before me the appellant failed to furnish any documentary evidence in support of that said powers were delegated by Secretary DSIR to the scientist Further there is no agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IR is only for renewal of recognition of inhouse R D units. There is no formal order or approval for such inhouse R D facilities in the prescribed form under section 35(2AB). The Revenue's case is that such a letter has not been issued by the prescribed authority i.e., Secretary, DSIR. Provisions of section 35(2AB) provides that where a company is engaged in the business of biotechnology or any business of manufacturing and production of anything which is not in the list of 11th schedule and incurs any expenditure on scientific research not in the nature of any cost of land and building but on inhouse research and development facility which has been approved by the prescribed authority who is the Secretary, DSIR, Government. of India, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee, then whether the order of approval has been granted by the Secretary, DSIR, or by some Nodal Officer on/or behalf of the Secretary, DSIR, it does not make any difference if all the conditions for granting of approval are satisfied. In this case, it is evident from the documents submitted by the learned Counsel for the assessee subsequent years that the DSIR has granted order of approval in form no. 3CM which has been signed by the Scientist-G for and on behalf of the Secretary, DSIR. Once the DSIR has authorized any of its Nodal Officer to issue order of approval on or behalf of the Secretary, then for the purpose of section 35(2AB), it can he taken that the approval has been granted by the prescribed authority itself. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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