2019 (3) TMI 2014

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.... ORDER P.C.: 1. Revenue is in the appeal against the judgment of the Income Tax Appellate Tribunal ("the Tribunal" for short) raising following questions for our consideration:- "(a) Whether on the facts and in the circumstances of the case and in law, the Tribunal erred in directing the AO to grant the benefit of deduction u/S. 35(2AB) when the approval for the R & D activities ....

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....not for the business of the assessee as such and the AO had made only proportionate disallowance at 10% of the interest expenditure? (d) Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct to direct the AO to treat exchange rate fluctuation as business income and not the income from other source stating that similar relief was granted in AY 2002-....

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....uch research and development activity once approved by the competent authority, the approval would relate back to the date of application. Reference in this respect can be made to the decision of the Division Bench of Gujarat High Court in the case of CIT Vs. Claris Lifesciences Ltd. (2008) 174 Taxman 113 and the decision of the Delhi High Court in case of CIT New Delhi Vs. Sandan Vikas (India) Lt....

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....st free funds and therefore, the disallowance was not justified. 4. With respect to Question No. (d), the issue is whether the additional proceeds of export sales due to foreign exchange rate fluctuation would also qualify for deduction under Section 80HHC of the Income Tax Act, 1961 ("the Act" for short". The Assessing Officer was of the opinion that the said amount cannot be said to have aris....