2023 (8) TMI 72

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ised the following substantive ground of appeal :- "Disallowance of claim u/s 35(2AB) amounting to Rs. 3,84,91,572/- The ld. CIT(A) has erred in law and on facts in confirming the disallowance of claim u/s 35(2AB) which is related to the R&D expenditure incurred by the assessee recognized R&D Centre duly approved by DSIR. The R&D expenditure of the assessee is certified by the Statutory Auditor. The order passed by the Assessing Officer is arbitrary and the disallowance is prayed to be deleted." I.T.A. No. 9207/DEL/2019 (A.Y. 2016-17) 3. The assessee has raised the following substantive grounds of appeal :- "1) Disallowance of claim u/s 35(2AB) amounting to Rs. 2,24,47,089/- The ld. CIT(A) has erred in law and on facts in confirmin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....chnical irregularities. The CIT(A) vide order dated 30/09/2019 dismissed the appeal filed by the assessee. 6. As against the order of the CIT(A) dated 30/09/2019, the assessee has preferred the present appeal on the grounds mentioned above. 7. The Ld. counsel for the assessee vehemently submitted that the CIT(A) has erred in law and on fact in confirming the disallowance of claiming u/s 35(2AB) which is related to R & D expenditure incurred by the assessee recognized R & D and duly approved by DSIR. The R & D expenditure of the assessee is certified by the statutory auditor. Therefore submitted that the order of the Lower Authorities are arbitrary and the disallowance is deserves to be deleted. 8. On the other hand, the Ld. DR submitted ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....from DSIR, it is not possible to allow the claim of the appellant. The addition is sustained. The Ground is ruled against the appellant." 11. It is found that the assessee has claimed the expenditure during the year on its own research and development centre which is duly approved by DSIR. The A.O. made independent enquiry u/s 133(6) of the Act from the scientist of DSIR, the Scientist vide letter dated 02/08/2017 stated that the assessee had not submitted the application on form 3CK. Therefore held that the assessee is not entitled for claiming u/s 35(2AB). Even during the appellate proceedings the assessee has sought time for filing Form 3CM from DSIR but the same has not been filed. 12. By considering the above facts and circumstances,....