2013 (11) TMI 1541

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....claimed by the appellant u/s 35(2AB) of the I.T. Act by mentioning that no in house scientific research has been carried out by the appellant. Moreover, the expenditure incurred is for certification purposes. 2. Because the Learned CIT(A) did not apply his mind in understanding the concept of Benevolent expenses and erred in facts and law in confirming the disallowance of Rs. 7,91,600/- by stating that the expenditure cannot be said to have been laid wholly and exclusively for the purpose of business." 2. Regarding ground No. 1, it was submitted by Learned A.R. of the assessee that the details of the expenses in respect of scientific research is available on page No. 8 of the paper book. For the sake of ready reference, these de....

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.... Amount paid to Gascon Auto Ltd. for purchase of CNG Kit Vikram 1500 CG 50 Nos. & CNG kit for CG 1000 Greaves GL 400   11,46,649.00 10.   Amount paid to M/s VRDE for development work and certification test charges for BALANCE SHEET-II norms on vikram 400-G with open loop & closed loop CNG circuit   4,44,200.00     TOTAL Less: Service Tax 44,99,628.38 41,386.80 44,58,241.58   2.1 A query was raised by the Bench that from these details of expenses, how it comes out that these expenses are incurred for in-house research & development as required the provisions of section 35(2AB) of the I.T. Act. In reply, it was submitted by Learned A.R. of the assessee that approval was obtaine....

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....e is rejected. 5. Regarding ground No. 2, it was submitted by Learned A.R. of the assessee that the claim of the assessee was rejected by the authorities below on the basis that this expenditure was not incurred for the purpose of business. It was submitted that as per Factory Order Part-II dated 20/01/2001, available on page No. 34 of the paper book, the assessee is required to collect Rs. 25/- to Rs. 50/- per employee from the employees and the assessee was required to contribute the matching amount and such amount was required to be given to the legal heir of the deceased employee. He submitted that when some relief is allowed to a deceased employee and its dependent, it has to be accepted that this is for business purpose. A query wa....