Capital R&D Expenditure Allowed U/s 35(1)(iv), Weighted Deduction Denied for Lack of DSIR Approval

Ashok Leyland Ltd. Vs ACIT (ITAT Chennai) Income Tax Appellate Tribunal (ITAT) Chennai ruled on cross-appeals filed by Ashok Leyland Ltd. and the Income Tax Department regarding deductions claimed under Section 35(2AB) of the Income Tax Act for Research and Development (R&D) expenses. The case revolved around the company’s claim for weighted deduction on its R&D expenditure, which was disallowed by the Assessing Officer (AO) due to the absence of Form 3CL from the Department of Scientific and Industrial Research (DSIR). The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the...