Case Law Details
ACIT Vs Ecocat India Pvt. Ltd. (ITAT Delhi)
There is no quarrel on the proposition that the DSIR has approved the weighted deduction for capital expenses. Those expenses were in a sum of Rs. 2,97,57,596/- which is acknowledged in the assessment order by the AO. What has not been permitted u/s 35(2AB) of the Act by the DSIR is the weighted deduction for the claim for revenue expenditure. The Respondent’s case has been that if weighted deduction is not permitted for revenue expenses then at least normal deduction should be permitted for the R&D expenses which indeed had been incurred by the assessee wholly, necessarily and exclusively for the purpose of business. The Ld. CIT(A) has accepted the pleading of the assessee.
In view of the approval for capital expenses as granted by the DSIR, the claim as allowed by the Ld. CIT(A) and hence the same cannot be faulted. The claim for revenue expenses is required to be allowed even otherwise in terms of the regular provisions of the Income Tax Act.
FULL TEXT OF THE ORDER OF ITAT DELHI
The present appeal has been filed by the Revenue against the order of the ld. CIT(A)-34, New Delhi dated 12.02.2019.
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