DCIT Vs ITW India Private Limited (ITAT Delhi)
The appeal before the Income Tax Appellate Tribunal (ITAT) Delhi arose from an order dated 28.08.2025 passed by the Commissioner of Income Tax (Appeals) [CIT(A)] under Section 250 of the Income Tax Act, 1961. The dispute concerned the disallowance of a weighted deduction claimed under Section 35(2AB) for scientific research expenditure amounting to Rs. 1,91,97,051.
The Assessing Officer (AO) disallowed the deduction on the ground that the assessee had not furnished the required approval in Form 3CM issued by the Department of Scientific & Industrial Research (DSIR). The AO held that the assessee was eligible for deduction only for a limited period and consequently added the claimed amount back to income.
On appeal, the CIT(A) examined the documents and found that the assessee had submitted Forms 3CLA and 3CM electronically during assessment proceedings and had also produced them during appellate proceedings. The CIT(A) noted that Form 3CM was valid for the period from 01.04.2013 to 31.03.2017. Based on this, the CIT(A) rejected the AO’s observation and deleted the disallowance.
The Revenue challenged this relief on multiple grounds. It argued that the assessee had failed to furnish Form 3CL, which it claimed was a mandatory requirement. The Revenue also contended that the burden of proof lay on the assessee to substantiate its claim with necessary approvals and that the CIT(A) had improperly admitted additional evidence without seeking comments from the AO, allegedly violating procedural rules.
