Weighted deduction under section 35(2AB) must follow Form 3CL; existing report cannot be rejected as additional evidence.

Weighted deduction under section 35(2AB) was required to be computed on the basis of the prescribed authority's quantified report in Form 3CL, since Rule 6(7A) envisages electronic furnishing of that report for determining eligible expenditure. Where Form 3CL had already been sent to the Assessing Officer, it could not be treated as additional evidence merely because it was relied upon in rectification proceedings under section 154. The rejection of rectification was not sustained, and the matter was remanded to the jurisdictional Assessing Officer to recompute the deduction in accordance with Form 3CL after giving a reasonable opportunity of hearing.

---

---

Issues: Whether the weighted deduction under section 35(2AB) was to be quantified on the basis of Form 3CL issued by the prescribed authority and whether such Form 3CL could be treated as additional evidence in rectification proceedings under section 154.

Analysis: The assessee's claim for deduction under section 35(2AB) was partly disallowed only in relation to capital expenditure, while the corresponding Form 3CL issued by the prescribed authority had already been sent to the jurisdictional Assessing Officer. The dispute was not about the existence of the claim but about the eligible quantum. Rule 6(7A) required the prescribed authority to furnish electronically the report quantifying the expenditure eligible for weighted deduction, and for the relevant year the deduction had to be worked out on that quantified approval. In that background, the report could not be regarded as additional evidence merely because it was relied upon in rectification proceedings, especially when it was already part of the Assessing Officer's record.

Conclusion: The rejection of rectification was not sustained, and the matter was restored to the jurisdictional Assessing Officer to recompute the deduction under section 35(2AB) in accordance with Form 3CL after granting a reasonable opportunity of hearing.

Final Conclusion: The assessee obtained a remand on the limited question of quantification of the weighted deduction, and the appeal succeeded only for statistical purposes.

Ratio Decidendi: For deduction under section 35(2AB), the quantum eligible for weighted deduction must follow the prescribed authority's quantified report in Form 3CL, and a report already available with the Assessing Officer cannot be rejected as additional evidence merely because it is relied upon in rectification proceedings.

---