TaxTMI 
TaxTMI 
2012 (4) TMI 616
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.... power. For the assessment year 2004-05, the assessee company filed its return of income on 31.10.2004, admitting total income of Rs. 41,43,231/-. The original assessment u/s 143(3) of the Act was completed on 5.12.2006 determining the taxable income at Rs. 1,28,52,642/-. 3. The Assessing Officer noticed that the assessee had claimed deduction of Rs. 26,84,451/- towards research and development expenses u/s 35(2AB) of the Act. Since the benefit of deduction u/s 35(2AB) of the Act is available only to the companies involved in the business of bio technology, the Assessing Officer issued notice u/s 148 of the Act. The Assessing Officer completed the assessment u/s 143(3) r.w.s. 147 of the Act on 18.9.2009 determining the total income of th....
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....ssee. The AO never observed that the assessee did not incur any such expenses. It is an admitted and accepted fact that the assessee had incurred expenditure. The discussion in the assessment order and disallowance is u/s 35(2AB) which is with regard to enhanced deduction claim. The general deduction for the actual expenditure incurred is u8/s 37. 6. The assessee submitted before the AO that in the previous assessments completed u/s 143(3) and in the subsequent assessments completed also u/s 143(3) no where the genuineness of the expenses is doubted and the deduction at one time is always allowed after proper verification of the details called for and submitted. In the circumstances the proposal u/s 148 is not correct. 7. The AO held ....
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.... the assessment year 2005-06 and in the original order of the current assessment year. 10. The CIT(A) has held as follows: I have considered the facts of the case and all the arguments. Section 35(2AB) of the Act has been incorporated for the encouragement of specified research. That is the reason why the section allows 1.5 times of the actual research and development expense as a deduction. In the present case, the Assessing Officer has not contended that the expenditure of Rs. 17,89,632/- is either bogus or has not been expended for business purpose. It is not the case of Assessing Officer that such an expense is not allowable at all. Therefore, it is to be deduced that the aforementioned expenditure is correct and has been made for....
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....turn of income on 29.10.2007 admitting total income of Rs. 18,33,250/- after claiming income from wind power project of Rs. 41,77,145/- as deduction u/s 80 IA(2) of the Act. The AO completed the assessment u/s 143(3) of the Act determining the total income of the assessee company at Rs. 64,33,621/- including short term capital gains of Rs. 11,07,172/- by making the following additions/disallowances: a) Disallowance of exemption u/s 10(1) of the Act of Rs. 41,17,645/-. b) Disallowance of deduction of Rs. 4,32,722/- towards proportionate interest on the loan taken from HDFC Bank. 2. The first issue deals with the disallowance of claim u/s 10(1) of the Act, whereby the assessee had claimed Rs. 41,17,645/- as agricultural income. The A....
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....assessee is admittedly claiming exemption u/s 10(1) in respect of basic foundation seeds which were generated by performing agricultural operation by the land by the assessee. This Tribunal in the assessee's own case for assessment year 2001-02 considered this issue and found that the assessee is entitled for exemption u/s 10(1) with regard to the basic seeds which were generated out of cultivation made by the assessee. In our opinion, the decision of the Tribunal for assessment year 2001-02 in the assessee's own case is equally applicable to the assessment year under consideration. Therefore, by following the order of this Tribunal in ITA No.943/Hyd/2004 dated 18.1.2008, we hold that the assessee is entitled for exemption u/s 10(1) only in....