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2014 (11) TMI 987

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....able to prove that the permission of the prescribed authority was obtained before incurring expenditure u/s 35(2AB) of the Act. 2. At the time of hearing, Shri Rajesh Ranjan Prasad, ld. CIT-DR defended the conclusion drawn in the assessment order by advancing the arguments which are identical to the ground raised. On the other hand, Shri Yogesh Thar, ld. Counsel for the assessee supported the conclusion drawn in the impugned order. 2.1. We have considered the rival submissions and perused the material available on record. The fact, in brief, are that the assessee declared loss of Rs. 31,02,10,470/- in its return filed on 25/09/2009 which was subsequently revised on 11/01/2011 declaring loss of Rs. 30,80,33,675/-. Assessment was completed ....

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.... to file a copy of Form No.3CL and Form No.3CM before the A.O. for giving necessary effect to this order. In result, the ground of appeal is treated as allowed. 2.2. We note that for granting approval u/s 35(2AB) of the Act, the assessee made application, with the prescribed authority, in accordance with section 35(2AB)(3) r.w. Rule 6(4) of the Income-tax Rules, 1962 (hereinafter the Rules), on 11/12/2007. The prescribed authority approved/granted in-house research and development facility u/s 35(2AB) of the Act on 04/03/2009 for a period from October 19, 2007 to 31st March 2010 in Form no. 3CM, in accordance with Rule 6(5A) of the Rules. This approval was produced before the Assessing Officer during assessment proceedings i.e. before fram....

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....eral on a prescribed form within specified time, meaning thereby, the authority concerned has to submit the report to the Director General. However, if the totality of facts are analyzed, as mentioned earlier, the assessee made application for such approval on 11/12/2007 with the prescribed authority and such approval was granted on 04/03/2009, therefore, the assessee cannot be denied the claimed deduction u/s 35(2AB) of the Act merely on the ground that the prescribed authority did not submit form no. 3CL in time to the Income-tax Department. The assessee cannot be penalized for the fault, if any, of the Department. The Assessing Officer cannot be expected to be too technical rather is to take practical approach under the facts narrated he....