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Case Law Details

Case Name : SRF Ltd Vs Union of India (Delhi High Court)
Appeal Number : W.P.(C) 3043/2022
Date of Judgement/Order : 14/07/2022
Related Assessment Year :
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SRF Ltd Vs Union of India (Delhi High Court)

Section 35(2AB) of the Act provides for weighted deduction of one and one half times (150%) of the expenditure incurred by a company on scientific research on in-house R&D facilities approved by the prescribed authority i.e. DSIR. In support of his submission, he relies upon Rule 6(1B) of the Rules. Further, according to him, Section 35(2AB)(3) provides that no company shall be entitled to deduction, unless it has entered into an agreement with DSIR for cooperation in R&D facility, which in terms of Rule 6(4) has to be in Form 3CK. DSIR, on being satisfied that all the conditions are met is required to pass an order of approval in Form 3CM under Rule 6(5A) of the Rules. He also submits that under Section 35 AB(4) read with Rule 6(7A)(c), the DSIR has to furnish audit report in Form 3CLA to DSIR. DSIR is required to submit report in Form 3CL under Rule 6(7A)(b) to Principal Commissioner of Income Tax/Chief Commissioner of Income Tax, quantifying the expenditure on scientific research incurred on in-house R&D units.

Having heard learned counsel for the parties, this Court is of the view that DSIR is statutorily bound to issue the Form 3CL within 120 days in accordance with Rule 6(7A)(ba).

Further, this Court in W.P.(C) No.1772/2018 has not restrained DSIR from issuing Form 3CL for any other assessment year.

Consequently, the present writ petitions are allowed with a direction to the DSIR to issue reports on the expenditure incurred by the Petitioner for the Assessment Years 2017-18, 2018-19 and 2020-21 in Form 3CL within six weeks. With the above direction, present writ petitions stand disposed of.

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