Tribunal Partially Allows Appeals, Requests Additional Documentation for Claim Reconsideration

The Tribunal partially allowed the appeals in I.T.A. No. 9206/DEL/2019 (A.Y. 2015-16) and I.T.A. No. 9207/DEL/2019 (A.Y. 2016-17) for statistical purposes. The CIT(A) disallowed the claims under sections 35(2AB) and 40a(1a) due to technical irregularities and lack of Form 3CM from DSIR. The Tribunal instructed the assessee to provide the necessary documentation for reconsideration of the claims within a specified timeframe.

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Issues Involved:
The issues involved in the judgment are disallowance of claim u/s 35(2AB) for assessment years 2015-16 and 2016-17, and disallowance as per section 40a(1a) of the Act for the year 2016-17.

I.T.A. No. 9206/DEL/2019 (A.Y. 2015-16):
The assessee contested the disallowance of claim u/s 35(2AB) amounting to Rs. 3,84,91,572, related to R&D expenditure incurred by the assessee recognized R&D Centre approved by DSIR. The CIT(A) confirmed the disallowance citing technical irregularities. The appellant failed to provide Form 3CM from DSIR, leading to dismissal of the appeal. The Tribunal directed the assessee to submit Form 3CM for reconsideration.

I.T.A. No. 9207/DEL/2019 (A.Y. 2016-17):
In this appeal, the assessee challenged the disallowance of claim u/s 35(2AB) amounting to Rs. 2,24,47,089 and disallowance u/s 40a(1a) for Rs. 64,50,805. The CIT(A) upheld the disallowances. Similar to the previous case, the Tribunal ordered the assessee to submit Form 3CM for reconsideration of the claim.

In both cases, the Tribunal allowed the appeals partly for statistical purposes, directing the CIT(A) to reevaluate the claims upon submission of the required documentation within a reasonable time.

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