TaxTMI 
TaxTMI 
2010 (2) TMI 1161
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....1.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-fareast-language:EN-US;} SHRI A.L.GEHLOT, AM & SMT. P.MADHAVI DEVI, JM For the Appellant : Shri Nitesh Joshi For the Respondent : Shri Sanjeev Jain. (DR) O R D E R Per P.MADHAVI DEVI, JM: This appeal of the assessee is directed against CIT(A)'s order dated 29/10/2009. 2. 2. The assessee has raised the following grounds of appeal- 1. The learned Assessing Officer as well as the Commissioner of Income Tax (Appeals) erred in law as well as on the facts of the case in disallowing/upholding the disallowance of the appellant's claim for ....
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....d 1-12-2008 submitted that it fulfills the conditions specified in sub-sec.[8A] of sec.80IB and also Rule 18DA(1)(e) of I.T.Rules. The assessee also filed the certificate issued by the prescribed authority certifying that the assessee is engaged in the scientific research and development activities. The AO however was not convinced with the assessee's submission that it was carrying on scientific research and development activities and held that the assessee is carrying on only service oriented activity i.e. development of extended release of existing tablets. As regards the certificate of the prescribed authority, he held that the said authority is also approving the project with the remark "the above approval is subject to the provisions ....
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....cture and that the development of drug formulation is not an advisory activity, but it is a research and if it is done under a contract is called contract research which is an accepted form of research development. He submitted that this letter was addressed to the Income Tax Officer Shri S.Gupta on a reference made by him and this is subsequent to the completion of the assessment proceedings. He also placed reliance upon the decision of the Bombay High Court in the case of Indian Planetary Society vs. CBDT And Ors. [318 ITR 102], wherein it has been held that while considering the application u/s.35[1][ii] of the Act, the government is duty bound to make enquiries of scientific research in the field of medicines etc., who would be conversa....
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....no mechanism of its own to be called as a research and development company. As regards rule of consistency and uniformity, the Ld.DR submitted that in the earlier assessment years, the AO has not examined as to whether the assessee fulfilled the conditions laid down in Rule 18DA and, therefore, those assessment proceedings cannot be said to be binding on the AO for the relevant assessment year. 7. Having heard both the parties and having considered their rival contentions, we find that the basic condition for the eligibility to claim u/s.80IB is that the assessee should be involved in the scientific research and development activity. Rules 18D and 18DA of the I.T.Rules provide that the prescribed authority shall certify the assessee to b....