AO cannot disallow Section 35(2)(AB) deduction without application of Mind

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 @...