2022 (8) TMI 450

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er [AO] u/s. 143(3) of the Act on 30-12-2016. The assessee has filed statement of facts and grounds of appeal which read as under: - 1. The Appellant is a Company engaged in the business of manufacture and sale of drugs and pharmaceutical products. 2. The Appellant Company filed its Return of Income, for the above Assessment Year admitting an income of Rs 10,35,77,030/- under conventional scheme and Rs 22,03,03,237/- U/s 115JB. The Learned Assessing officer completed the assessment U/s 143(3) and determined a taxable income of Rs 13,01,89,939/- under conventional scheme and Rs 22,03,54,410/- U/s 115JB. 3. The Appellant filed an appeal against the order U/s 143(3), which was disposed by the learned Commissioner of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Claris Life Sciences Limited [2010] 326 ITR 251 (Guj). * Sandan Vikas (India) Limited - 335 ITR 117 - (Del) HC. * Aarti industries Limited vs ADIT (ITA/370/Mum/2009) The Appellant carves leave to add, alter or modify the grounds of appeal at any time before or during the hearing of appeal. As evident, the sole grievance of the assessee is quantum of deduction u/s 35(2AB). 2. The Ld. AR relied on the decision of Mumbai Tribunal in Omni Active Health Technologies Ltd Vs ACIT in ITA No. 7284/Mum/2018 order dated 26.05.2020 as well as the decision of Pune Tribunal in Cummins India Limited Vs DCIT in ITA No. 309/Pun/2014 order dated 15.05.2018. The Ld. AR submitted that the amendment brought in by the IT (Tenth Amendme....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... The difference arose because of the fact that DSIR grant approval for revenue expenditure only from 28.01.2014 whereas the assessee claimed expenditure incurred throughout the financial year. However, rejecting the same, Ld. AO disallowed the claim and added an amount of Rs.235.85 Lacs to the income of the assessee. 4. Upon further appeal, The Ld. CIT(A) observed that the provisions of Sec.35(2AB) have to be read in conjunction with Rule 6 of Income Tax Rules. Rule 6(4) provide that the company has to make an application in Form 3CK. The approval as given to the assessee shall be subject to various conditions. The second condition of Rule 6(7A) is that the approving authority should submit a report in relation to the approval of in ho....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....which has been approved by the prescribed authority and the assessee is eligible to claim deduction u/s 35(2AB). The point of dispute is only for quantum. The approving authority has granted approval for revenue expenditure only from 28.01.2014 whereas the assessee has claimed expenditure incurred throughout the financial year. We find that Ld. CIT(A) has sought distinction in the case law of Hon'ble Madras High Court in CIT Vs Wheels India Limited (2011) 336 ITR 513. However, after studying this case law, we find that the analogy of this case law would be applicable to the facts of the present case. The Hon'ble Court concurring with the decision of Hon'ble Gujarat High Court in CIT V/s Claris Life sciences Ltd. (326 ITR 251), held as under....