Mahle Behr India Pvt. Ltd Vs DCIT (ITAT Pune)
ITAT Pune held that claim of assessee not entertained under one provision doesn’t oust it from consideration under any other provision. Thus, capital expenditure incurred on research and development outside India is eligible for deduction u/s.35(1)(iv) consequent to denial u/s. 35(2AB).
Facts- It is seen from the assessment order that the assessee has claimed weighted deduction u/s 35(2AB) of the Act of Rs.15,00,63,093/-. During the course of assessment proceedings the Assessing Officer noted that out of total expenditure on R&D, the expenditure of Rs.3,38,82,341/- has been incurred outside India and not in the R&D facility approved by the prescribed authority. AO distinguished the case laws relied upon by the assessee by holding that the said case laws are in respect of expenditure within India but outside the approved R&D facility as against the case of the assessee wherein the expenditure has been incurred outside the approved R&D facility and also outside India. AO therefore, reduced the assessee’s claim of deduction u/s 35(2AB) to the extent of Rs.3,38,82,341/-.
AO in the final order passed on 19.01.2017 however, made disallowance of weighted deduction u/s 35(2AB) to the extent of 3,38,82,341/-. Aggrieved with such order of the Assessing Officer / TPO / DRP, the assessee is in appeal before the Tribunal.
