https://www.taxtmi.com/caselaws?id=761091 ITAT Visakhapatnam allowed the assessee's appeal regarding disallowance of weighted deduction u/s 35(2AB). The AO had treated funds received from DSIR as grant-in-aid, disqualifying it from weighted deduction benefits. However, ITAT held that the amount constituted a soft loan repayable in five equal instalments, not grant-in-aid. The tribunal noted identical terms in previous assessment years where Ministry of Science and Technology confirmed the nature as soft loan, assessee's treatment as unsecured loan in financial statements, and TDS deduction on interest payments. ITAT directed AO to delete the disallowance. en-us Thu, 24 Oct 2024 00:00:00 +0530 Tue, 05 Nov 2024 07:37:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761091 ITAT Visakhapatnam allowed the assessee's appeal regarding disallowance of weighted deduction u/s 35(2AB). The AO had treated funds received from DSIR as grant-in-aid, disqualifying it from weighted deduction benefits. However, ITAT held that the amount constituted a soft loan repayable in five equal instalments, not grant-in-aid. The tribunal noted identical terms in previous assessment years where Ministry of Science and Technology confirmed the nature as soft loan, assessee's treatment as unsecured loan in financial statements, and TDS deduction on interest payments. ITAT directed AO to delete the disallowance. Case-Laws Income Tax Thu, 24 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761091