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AO cannot disallow Section 35(2)(AB) deduction without application of Mind
Case Law Details
- Case Name
- ACIT Vs M/s. Crompton Greaves Ltd. (ITAT Mumbai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2009-10
- Courts
- All ITAT, ITAT Mumbai
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ACIT Vs M/s. Crompton Greaves Ltd. (ITAT Mumbai)
Conclusion: Disallowance of deduction under section 35(2)(AB) on the ground of non approval of expenditure claimed by the DSIR was allowable as prior to the amendment, i.e., upto 30.06.2016, the pre-requisite for allow ability of deduction was approval for Units and not approval for the quantum of expenditure. Moreover, AO disallowed the claim without due application of mind.
Held:
Assessee had incurred in-house scientific research expenditure (capital and revenue). It had claimed weighted deduction u/s. 35(2)(AB) in computing the total income @...
