TMI Blog2019 (5) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... well on the record of the Revenue, the weighted deduction for the expenditure incurred on the Scientific Research could not have been disallowed by the authorities below and, therefore, Tribunal, in our view, rightly held such Scientific Research expenditure to be allowable under Section 35 (2AB). - Decided in favour of the Assessee and against the Revenue. Levy of Interest u/s 234D - HELD THAT- Computation of interest will depend upon the appeal effect order to be passed, the quantum of net payment is to be determined accordingly, after allowing weighted deduction under Section 35 (2AB) . The provisions of Section 234D have been held applicable for Assessment Year 2003-2004 in question in terms of the decision of the Co-ordinate Bench of this Court in the case of Fisher Sanmar Ltd . [ 2014 (4) TMI 236 - MADRAS HIGH COURT] . - Decided in favour of the Revenue and against the Assessee. - T.C.A.Nos.1457 And 1458 of 2008 - - - Dated:- 19-3-2019 - Dr. Justice Vineet Kothari And Mr. Justice C.V. Karthikeyan For the Appellant : Mr.M.Swaminathan, Senior Standing Counsel, assisted by Ms.V.Pushpa, Junior Standing Counsel. For the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been mentioned that the assessee's in-house R D Unit's application for renewal of recognition beyond 31.3.2006 has been considered and it was decided to accord renewal of recognition to the unit up to 31.3.2009. Again, vide letter from the prescribed authority dated 26.6.2003, it has been mentioned that the assessee's inhouse R D Unit's application for renewal of recognition beyond 31.3.2003 had been considered and it was decided to accord renewal of recognition to the Unit up to 31.3.2006. The learned counsel of the assessee further produced letter dated 10.7.2000 whereby, by reference to similar application for recognition beyond 31.3.2000, the concerned authority had decided to accord renewal up to 31.3.2003. Again, vide letter dated 24.4.1997, with reference to application for renewal of recognition beyond 31.3.1997, the renewal was accorded for a period up to 31.3.2000. The learned counsel of the assessee further submitted that assessee had duly submitted application dated 16.6.1998 whereby request for necessary certificate to claim deduction u/s 35 (2AB) had been made. By way of this letter, the assessee had also enclosed Form 3 CK in duplicate, duly signed, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , once the facility is approved the entire expenditure incurred on development of R D facility has to be allowed for weighted deduction. The Form 3 CM does not postulate any specific period for grant of weighted deduction. The deduction cannot be restricted only to the expenditure incurred after the date of approval. Relevant paragraph of the order is noted as under : 'All along, s. 35(2AB) speaks of (i) development of facility and (ii) incurring of expenditure by the assessee for development of such facility (iii) approval of the facility by the prescribed authority which is DSIR in the instant case and (iv) allowance of weighted deduction on the expenditure so incurred by the assessee. Provision nowhere suggests or implies that R D facility is to be approved from a particular date. In other words, it is nowhere suggested that date of approval only will be cutoff date for eligibility of weighted deduction on the expenses incurred from that date onwards. A plain reading clearly manifests that assessee has to develop facility which presupposes incurring expenditure in this behalf, application to the prescribed authority, who after following proper procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produce the requisite approval of the Scientific Research undertaken by him for the period in question though such approval was available for the period prior to Assessment Year 2003-2004 and for the period subsequent to it, the mandatory condition of producing the approval for the Assessment Year in question was not complied with by the Assessee and, therefore, the learned Tribunal erred in allowing such weighted deduction of expenditure incorporated under Section 35 (2AB) of the Act. 5. On the Second Question of Levy of Interest under Section 234D of the Act on the excess refund made to the Assessee along with the Assessment Intimation sent to him under Section 143 (1) of the Act, the learned Senior Standing Counsel for the Revenue drew our attention to a judgment of this Court in the case of Commissioner of Income Tax v. Fisher Sanmar Ltd. , (2014) 361 ITR 296 (Mad), wherein, a Division Bench of this Court held that if the regular assessment of the Assessee is made after the amendment of provisions of Section 234D of the Act w.e.f. 01.06.2003, then, the provisions of Section 234D for levy of interest on the excess refund amount would become applicable, even thoug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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