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TMI Blog2023 (6) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... JM: This is an appeal by the assessee against order dated 28.10.2022 passed by National Faceless Appeal Centre (NFAC), Delhi, pertaining to assessment year 2018-19. 2. The dispute in the present appeal is confined to disallowance of Rs. 29,05,724/- claimed as deduction under section 35(2AB) of the Income-tax Act, 1961 (in short 'the Act'). 3. Briefly the facts are, the assessee is a resident c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f revenue expenditure incurred. Though, the assessee contested the disallowance before learned first appellate authority, however, it was unsuccessful. 4. Before us, learned counsel appearing for the assessee submitted that, though, before the Assessing Officer, the assessee could not furnish Form 3CL, as, it was not issued by competent authority, however, in course of proceeding before the first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed, the Assessing Officer disallowed assessee's claim of weighted deduction under section 35(2AB) of the Act. However, there cannot be any doubt regarding the genuineness of the expenditure claimed as the Assessing Officer has allowed 100% deduction of revenue expenditure related to research and development. He has only disallowed the excess deduction claimed under section 35(2AB) of the Act. Per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 35(2AB) of the Act, the departmental authorities cannot disentitle the assessee from availing the deduction by ignoring Form 3CL. Hence, disallowance of Rs. 29,05,724/-, is unsustainable. Accordingly, we delete the disallowance. Grounds raised are allowed.
8. In the result, appeal is allowed.
Order pronounced in the open court on 16th May, 2023 X X X X Extracts X X X X X X X X Extracts X X X X
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