TaxTMI 
TaxTMI 
2021 (4) TMI 712
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....s to pull out the oil from the wells. It filed its return of income 30.11.2012 declaring an income of Rs. 12,04,31,650/-. This case was selected for scrutiny through CASS for examining the details in complete manner with specific emphasis to examine the deduction claimed under section 35, 35(2AA) and 35(2AB) of the Income Tax Act, 1961 (in short 'the Act'). The Assessing Officer completed the assessment u/s 143(3) on 05.12.2014 determining the total income of the assessee at Rs. 13,75,88,960/-. 3. Subsequently, the Pr. CIT, on examination of the assessment order along with the data submitted by the company during the course of assessment proceedings, found that there are certain omissions in the body of the assessment order, which has resu....
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....es. With regard to sale of assets of Rs. 1,55,98,000/-, he noted that the assessee had sold vehicles amounting to Rs. 1,55,35,000/- and computers for Rs. 63,000/- during the year and same has been reduced from the W.D.V. in its depreciation chart. 5. The Pr. CIT referred to the sub rule 7A of Rule 6 of Income Tax Rules, 1962 which specifies conditions for availing weighted deduction. According to him, in view of the above Rule submission of Form 3CL to Director General (Income Tax Exemptions) is a condition which needs to be fulfilled. He observed that in this case, there is nothing on record to suggest that the above said condition was satisfied. Further no working is available on record to suggest as to how the deduction of Rs. 6.58 Cro....
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....y the assessee company is without taking the approval of DSIR. Whereas the claim of the assessee is genuine, as the assessee has the following requisite approvals - a. Its R&D Centre is recognized by DSIR b. Approval of R&D expenditure u/s 35(2AB) on Form 3CM was duly received by the assessee company and filed before Hon'ble Pr. CIT which includes the agreement by the Assessee with DSIR. c. Form 3CL is a direct communication by DSIR to DG(Inv.) and the assessee has no role on this. d. The whole claim is reflected in Form 3CD of Tax Audit. It is notable that the Flon'ble Pr. CIT did not raise any query on sale of assets by the assessee company, therefore, it is presumption. However, sale of assets as quoted by the Hon&#....
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....IT should be set aside and the grounds raised by the assessee should be allowed. 8. The learned DR on the other hand, heavily relied on the order of the Pr. CIT. Referring to the assessment order, he submitted that although the case was selected for scrutiny to examine the deduction claimed u/s 35, 35(2AA) and 35(2AB), however, the Assessing Officer has not mentioned a single word about the allowability of the same in the body of the assessment order. Therefore, the Pr. CIT was fully justified in invoking the provisions of section 263 of the Act. 9. We have considered the rival arguments made by the both the sides, perused the orders of the Assessing Officer and Pr. CIT and the paper book filed on behalf of the assessee. We have also cons....