ITAT Mumbai Upholds Weighted Deduction under Section 35(2AB)

The ITAT Mumbai dismissed the revenue's appeals in all three cases, upholding the CIT(A) orders allowing the weighted deduction u/s 35(2AB) based on the Meco Instruments Pvt. Ltd. judgment. The tribunal found the facts to be identical, and the law unchanged, leading to a favorable decision for the assessee.

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Issues:
- Appeal against CIT(A) order allowing relief on weighted deduction u/s 35(2AB) for A.Ys. 2011-12, 2012-13 & 2013-14.

Detailed Analysis:

1. ITA. NO.5679/M/2017:
- Background: Revenue appealed CIT(A) order allowing weighted deduction u/s 35(2AB) for A.Y. 2011-12.
- Facts: Assessee claimed deduction for in-house R&D expenses, which was partially disallowed by AO.
- CIT(A) Decision: CIT(A) allowed the claim based on Meco Instruments Pvt. Ltd. judgment.
- Arguments: Revenue argued against CIT(A) decision, while Assessee relied on CIT(A) order.
- Judgment: ITAT upheld CIT(A) decision, stating facts were identical to Meco Instruments case, and law not changed.

2. ITA. NO.5680 & 5681/M/2017:
- Similarity: Facts similar to ITA. NO.5679/M/2017, with different figures.
- Decision: ITAT dismissed revenue's appeals based on the reasoning in ITA. NO.5679/M/2017.

Conclusion:
The ITAT Mumbai dismissed the revenue's appeals in all three cases, upholding the CIT(A) orders allowing the weighted deduction u/s 35(2AB) based on the Meco Instruments Pvt. Ltd. judgment. The tribunal found the facts to be identical, and the law unchanged, leading to a favorable decision for the assessee.

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