https://www.taxtmi.com/caselaws?id=759871 ITAT Mumbai partially allowed the assessee's appeal in a case involving bogus purchases and R&D expense disallowances. For alleged bogus purchases, the tribunal estimated profit at 8% of the disputed amount due to supplier's contradictory statements and documentary deficiencies. Regarding R&D expenses under section 35(2AB), the tribunal allowed clinical trial expenses, building repairs related to R&D, and exhibit batch expenses as eligible for weighted deduction, following Gujarat HC precedent in Cadila Healthcare. Foreign consultancy expenses were remanded for fresh examination. Under section 14A, interest disallowance was deleted following HDFC Bank precedent, while expenditure disallowance under Rule 8D(2)(iii) was directed to be recomputed considering only exempt income-yielding investments. en-us Mon, 16 Sep 2024 00:00:00 +0530 Wed, 09 Oct 2024 10:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759871 ITAT Mumbai partially allowed the assessee's appeal in a case involving bogus purchases and R&D expense disallowances. For alleged bogus purchases, the tribunal estimated profit at 8% of the disputed amount due to supplier's contradictory statements and documentary deficiencies. Regarding R&D expenses under section 35(2AB), the tribunal allowed clinical trial expenses, building repairs related to R&D, and exhibit batch expenses as eligible for weighted deduction, following Gujarat HC precedent in Cadila Healthcare. Foreign consultancy expenses were remanded for fresh examination. Under section 14A, interest disallowance was deleted following HDFC Bank precedent, while expenditure disallowance under Rule 8D(2)(iii) was directed to be recomputed considering only exempt income-yielding investments. Case-Laws Income Tax Mon, 16 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759871