Matrix Clothing Pvt. Ltd. Vs ACIT (ITAT Delhi)
ITAT Delhi held that approval from the PCCIT or PDGIT is mandatory, as provided u/s 35(2AB)(iv) of the Act. Since such mandatory approval of R&D facility from the PCCIT or PDGIT was not obtained by the assessee therefore, weighted deduction u/s 35(2AB) of the Act cannot be allowed.
Facts- The assessee is a company engaged in the business of manufacturing and trading of garments, menswear, sportswear etc. besides having income from generation of power and energy through windmill. The case of the assessee was selected under CASS and notice was issued u/s 143(2) followed by notices u/s 142(1) alongwith questionnaire. In the instant case, assessee was having transactions with its AE therefore, the matter was referred for determination of ALP of international transaction to the TPO who vide its order dated 13.10.2022 proposed adjustment of INR 53,24,17,100/- on account loan written off. Thereafter, AO passed the draft assessment order dated 30.12.2023 u/s 144C(1) of the Act wherein AO has proposed various additions/disallowances
Against the draft order, assessee filed objections before the ld. DRP who vide its order dated 30.09.2024, sustained the additions proposed on account of written-off of loan amount given to its AE and with respect to other additions/disallowance, AO was directed for making certain verifications/adjustments. Thereafter, the AO passed the final assessment order u/s 143(3) r.w.s. 144C (13) of the Act wherein after following the directions of DRP, the AO made the additions/disallowance as proposed in the draft assessment order at INR 60,77,78,429/- and further re-computed the book profit u/s 115JB of the Act by making additions of the amount of INR 60,77,78,429/- and the book profit was thus assessed at INR 63,62,72,431/-.
