Court declines depreciation issue on royalty, admits appeal on section 35(2AB) deduction for new product development.

The Court declined to entertain the issue of depreciation on royalty paid by the Assessee Company and the deduction on capital expenditure for construction, citing previous favorable decisions for the Assessee. However, the Court admitted the appeal regarding the deduction under section 35(2AB) for expenditure on developing new products for Glenmark Pharmaceuticals Inc. USA, for further consideration and decision.

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Issues involved:
The judgment involves the following issues:
(A) Depreciation on royalty paid by the Assessee Company
(B) Deduction u/s.35(1)(iv) on capital expenditure for construction
(C) Deduction u/s.35(2AB) on expenditure for development of new products

Issue A - Depreciation on royalty paid:
The Court noted that the issue of allowing depreciation on royalty paid by the Assessee Company was already decided in favor of the Assessee in a previous case. Therefore, the Court declined to entertain this question.

Issue B - Deduction on capital expenditure for construction:
The Counsel mentioned that this issue was previously raised in a different case, and the Court had refused to entertain it. Following the precedent, the Court decided not to entertain this question as well.

Issue C - Deduction on expenditure for development of new products:
The Court admitted the appeal on the issue of allowing a deduction u/s.35(2AB) on expenditure incurred by the Assessee Company towards the development of new products for Glenmark Pharmaceuticals Inc. USA. This issue was considered for further examination and decision by the Court.

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