Case Law Details
Indian Tonners and Developers Ltd. Vs ACIT (ITAT Delhi)
Introduction: The Income Tax Appellate Tribunal (ITAT) Delhi recently addressed a case involving Indian Tonners and Developers Ltd. and the Assistant Commissioner of Income Tax (ACIT) for the assessment year 2018-19. The primary point of contention revolved around the eligibility of the company to claim a deduction under section 35(2AB) of the Income Tax Act, 1961. This article provides a detailed analysis of the case and its implications.
Detailed Analysis:
1. Background: Indian Tonners and Developers Ltd. (the assessee) is a resident corporate entity primarily engaged in the manufacturing and sale of inks and toners for photocopiers. For the assessment year in question, the assessee filed its income tax return, seeking a deduction under section 35(2AB) related to research and development expenditure.
2. The Issue: The core issue in this case was the eligibility of the assessee to claim a deduction under section 35(2AB) of the Income Tax Act. To avail this benefit, the assessee had to submit Form 3CL issued by the competent authority as required by the tax law.
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