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TMI Blog2020 (11) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... AY 2010-11 also in ITA No.1351/Bang/2015. The appeals for AY 2010-11 and 2011-12 were heard together and a common order was passed by the Tribunal. On the issue of allowing deduction u/s.35(2AB) of the Act, the Tribunal came to the following conclusion:- "7. Grounds 6 to 10 raised by assessee are with regard to rejection of the claim of assessee for grant of weighted deduction u/s. 35(2AB) of the Act. The admitted position u/s. 35(2AB) of the Act is that approval of prescribed authority on the scientific research on in house R&D facility is required to be obtained. It is also the admitted position that the assessee obtained the approval from the prescribed authority w.e.f. 1.4.2011. The assessee had made application to the prescribed auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he production and without which survival becomes difficult. The Appellant's eligibility to claim the deduction is also not in dispute, however, what is unacceptable is that the Assessee has claimed the deduction in respect of the current AY. without receiving approval during the year. As discussed elsewhere, Approval has been received by the Assessee-company during the period relevant to subsequent AY 2012-13. Of course, a deduction is allowed in Assessment in AY 2012-13. The decision in the case of Claris Life Sciences, is distinguishable for the reason that Approval in that case was received during the year itself. Whereas in the case on hand, as said above, the Approval is received not during the current year. In the circumstances, I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f recognition or approval is sufficient to grant deduction u/s. 35(2AB). In our view, the ratio laid down in the aforesaid decision cannot be applied to the case of assessee. As we have already mentioned that the approval for grant of recognition to the prescribed authority was made by the assessee only on 12.5.2011 and not at any time during the relevant previous year. In the given facts and circumstances, we are of the view that the order of CIT(Appeals) should be upheld on this basis. We may also mention a similar claim has been made by the assessee in AY 2011-12 which is also being decided in this common order and in that year the assessee would be entitled to the benefit of deduction u/s. 35(2AB) as the approval was received on 12.5.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable. Following the aforesaid decisions, we hold that the assessee should be allowed weighted deduction u/s. 35(2AB) of the Act for AY 2011-12. Thus, the relevant grounds of appeal are allowed." 4. In this MP the revenue has pointed out that the conclusions of the Tribunal for AY 2010-11 was that if the application for grant of approval is made to the prescribed authority during the previous year, then the deduction has to be allowed even though the approval is obtained at a later date. If this analogy is applied to AY 2011-12, the application for approval was made on 12.05.2011 which is after the end of previous year relevant assessment year 2011-12. The revenue has therefore prayed that deduction u/s.35(2AB) of the Act for AY 2011-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision of the Tribunal for AY 2010- 11 rejecting the appeal of the assessee for allowing deduction u/s. 35(2AB) of the Act will not be affected in any manner. However, the findings 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. With these observations, we recall the order of the Tribunal in ITA No. 1352/B/15 dated 06.02.2020 for the limited purpose of re-adjudicating the grounds 2 to 6 raised by the assessee in that appeal which is with regard to the grant of deduction u/s 35(2AB) of the Act. Accordingly, the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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