TMI Blog2020 (11) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs in AY 2010-11 regarding date of application for grant of approval and date of approval will be adjudicated afresh while adjudicating the issue of deduction u/s. 35(2AB) of the Act for AY 2011-12 without being influenced in any manner whatsoever by the findings in AY 2010-11. - MP No. 119/BANG/2020 [In ITA 1352/BANG/2015] - - - Dated:- 5-11-2020 - ORDER Per N.V. Vasudevan, Vice President This is a MP filed by the revenue praying for recalling the order of Tribunal dated 6.2.2020 insofar as it relates to AY 2011-12 in ITA No. 1352/B/2015. 2. One of the issues that arose for consideration in the appeal by the assessee for AY 2011-12 was with regard to the allowability of the assessee for weighted deduction u/s 35(2AB) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 35(2AB) nowhere suggests or implies that the R D facility is to be approved from a particular date or that the date of approval only will be the cut-off date for allowability of weighted deduction. The CIT(Appeals) on this aspect held as follows:- The contents of the Assessment order and the submissions of the Assessee are perused and considered. The Hon'ble High Court of Gujarat has approved inprinciple that cut-off date for claiming deduction under section 35(2AB) is not the date of approval by the Government. In the instant case, the Approval has been received during the FY 2011-12, which is after 2 years of the current AY. The Assessee is into the business of manufacturing of bulk drugs and intermediaries, which go into produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Banco Products (I) Ltd., 405 ITR 318 (Guj). 10. We have perused the aforesaid decisions and we find that in the case of Claris Lifesciences (supra), weighted deduction was claimed by the assessee in AY 2001-02 and the approval was received in that year itself. Similarly in the case of Sandan Vikas (India) Pvt. Ltd. (supra), weighted deduction was claimed in AY 2005-06 and the application was filed by the assessee company on 10.1.2005 i.e., during the relevant previous year. In the case of Banco Products (I) Ltd. (supra), weighted deduction was claimed for AY 2008-09 and application to the prescribed authority was made on 22.12.2006, much prior to the previous year relevant to AY 2008-09. It was in those circumstances that tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground of assessee for AY 2010-11 that the claim of assessee was rejected only because of the approval of the prescribed authority u/s. 35(2AB) of the Act was effective only from 1.4.2011. In AY 2011-12 also, the revenue took the same stand that the approval was obtained only on 7.12.2011 and it was valid only from 1.4.2011 to 31.3.2012 relevant to AY 2012-13. 34. We have already held while deciding identical ground for AY 2010-11 that the deduction has to be allowed for AY 2011-12 because the application for grant of approval to the prescribed authority was made by the assessee on 12.5.2011 i.e., during the relevant previous year. In the circumstances, the decision of the Hon ble Gujarat High Court in the case of Claris Lifesciences Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowability for the deduction u/s 35(2AB). He pointed out that the date 12.05.2011 referred to in the order of Tribunal is the date of application made by the assessee for issue of approval in Form 3CM and this is not the relevant date. 6. We have carefully considered the rival submissions and are of the view that date of approval is very crucial and in view of the facts brought to our notice in the MP and in view of the facts brought to our notice by the ld. counsel for the assessee regarding the correct date of approval of the prescribed authority which is stated to be 19.01.2011, the question with regard to the allowability of the assessee to claim deduction u/s 35(2AB) for AY 2011-12 needs to be re-adjudicated as there is a mistake a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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