Scientific research deduction denied without DSIR approval, goodwill depreciation allowed, additional depreciation remanded for reconsideration

ITAT Delhi addressed three issues in this case. For deduction u/s 35(2AB) regarding scientific research expenditure, the Tribunal noted that approval by DSIR was not obtained and a related matter concerning R&D Centre exclusion was pending before Delhi HC. Following judicial discipline, ITAT restored the matter to AO for re-computation after HC decision. Regarding depreciation on goodwill disallowance, ITAT directed AO to delete the addition and allow depreciation following consistent precedent from assessee's own case. For additional depreciation claim at 10%, ITAT remanded the matter to AO for merit consideration, following coordinate bench reasoning from earlier years, as revenue provided no distinguishing material.

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Issues Involved:
1. Disallowance of weighted deduction u/s 35(2AB)
2. Disallowance of depreciation on Goodwill
3. Non-allowance of claim of balance additional depreciation
4. Computation of book profits u/s 115JB
5. Initiation of penalty proceedings u/s 271(1)(c)
6. Charging of interest u/s 234C and 234D

Summary of Judgment:

Disallowance of weighted deduction u/s 35(2AB):
The assessee's claim for weighted deduction u/s 35(2AB) amounting to INR 6,17,97,008/- was disallowed due to short approval by DSIR, mainly on account of delay in filing Form No. 3CK. The Tribunal noted that the statute does not prescribe the receipt of Form No.3CL as a pre-condition for claiming deduction. The Tribunal directed the AO to re-compute the disallowance after the decision of the Hon'ble High Court of Delhi, where a related issue is pending adjudication.

Disallowance of depreciation on Goodwill:
The assessee claimed depreciation on goodwill of INR 19,15,183/- arising from the acquisition of business units. The Tribunal found that the issue is covered by the decision of the Co-ordinate Bench of the Tribunal in the assessee's own case for previous assessment years. The Tribunal directed the AO to allow the depreciation on goodwill as claimed by the assessee.

Non-allowance of claim of balance additional depreciation:
The assessee's claim for balance additional depreciation @10% amounting to INR 29,51,16,052/- was not entertained by the AO and Ld. CIT(A). The Tribunal remitted the matter back to the AO to verify the claim and allow it in light of the Tribunal's orders in the assessee's own case for previous years.

Computation of book profits u/s 115JB:
The Tribunal did not separately adjudicate the issues related to the computation of book profits u/s 115JB, as they were either general in nature, not pressed, or consequential.

Initiation of penalty proceedings u/s 271(1)(c):
The Tribunal dismissed the ground related to the initiation of penalty proceedings as premature.

Charging of interest u/s 234C and 234D:
The Tribunal dismissed the ground related to the charging of interest u/s 234C and 234D as consequential and requiring no separate adjudication.

Conclusion:
The appeal of the assessee was partly allowed for statistical purposes, with specific directions to the AO to re-compute disallowances and verify claims as per the Tribunal's findings and pending adjudications.

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