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TMI Blog2019 (2) TMI 1324X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn of income for the A.Y 2012-13 on 30.10.2012 admitting total income of Rs. 25,85,65,930 after claiming deduction of Rs. 56,58,05,407/- u/s 80IB of the Act. Subsequently, the assessee company filed its revised return of income on 28.03.2014 declaring an income of Rs. 23,61,93,160/-. The case was selected for scrutiny under CASS and accordingly notices were issued and served on the assessee. 3. During the assessment proceedings u/s 143(3) of the Act, the AO observed that the assessee computed the total deduction u/s 80IB(8A) at Rs. 62,13,03,837/-. The AO observed that the assessee during the A.Ys 2005-06 and 2006-07, claimed deductions u/s 10B on Clinical Pharmacology and Medicinal Chemistry Divisions and for the reasons mentioned in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim such deduction. 2. Any other grounds that may be urged at the time of hearing". 4. The learned DR supported the order of the AO and further submitted that the assessee possesses only software and no intangible assets and therefore, it cannot be said to be carrying on independent research. The learned Counsel for the assessee, on the other hand, submitted that this issue had arisen in the earlier A.Ys and after considering the issue on merits, the Tribunal has allowed the deduction of the assessee. 5. Upon hearing both the parties, we find that this issue had arisen for the first time during the A.Ys 2005-06 and 2006-07 and the Tribunal after considering the issue at length directed the AO to allow the claim of deduction u/s 80IB(8A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he claim of deduction under section 80-IB(8A) was denied by the Commissioner of Income-tax (Appeals) mainly on the basis of the fact that the assessee has not furnished evidence to show that it has fulfilled all the conditions as laid down under rule 18DA of the Income-tax Rules. 38. However, fact remains that the prescribed authority under the Act has not only approved the assessee as a research and development company eligible for deduction under section 80- IB(8A) but has also renewed such approval from time to time. The approval granted and subsequent renewal of the approval does reveal the fact that the prescribed authority has granted such approval and subsequent renewal being satisfied with the fact that the assessee is eligible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not specifically withdrawn. In the appeal before us, admittedly there is no material on record before us to show that the approval granted by the assessee has been withdrawn by the prescribed authority. In the aforesaid circumstances, therefore the deduction claimed under section 80- IB(8A) cannot be denied to the assessee till such time the assessee is approved as research and development organisation by the prescribed authority. In the aforesaid view of the matter, we set aside the order of the Commissioner of Income-tax (Appeals) on this issue and direct the Assessing Officer to allow the claim of deduction under section 80-IB(8A) of the Act. We may further make it clear that this decision of ours, allowing assessee's claim of de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen from the approval granted, there are no change of facts and assessee is found to be eligible for deduction u/s. 80IB. In view of that, as the issue is squarely covered by the earlier decision, we uphold the order of CIT(A) and dismiss the Revenue grounds on this in all the years. We find the authorities were renewing the certificates after verifying whether the assessee is fulfilling the requisite conditions. The CIT (A), therefore, verified that the prescribed authority has renewed the certificate for the A.Y 2012-13 and thereafter considered the ITAT orders to grant relief to the assessee. 6. We find that the facts and circumstances of the case in this A.Y are also the same as in the earlier A.Ys before the ITAT, and the learned D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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