TaxTMI 
TaxTMI 
2023 (10) TMI 920
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....r A. Y. 2016-17. 2. The assessee filed its original return of income for the A.Y. 2016-17 on 30.11.2016 declaring total income at Rs. 35,24,17,390/-. Subsequently revised return of income was filed, declaring total income at Rs. 37,70,49,380/-. The case was selected for scrutiny and an order under section 143(3) r/ w 144C (3) of the Act was passed determining total income at Rs. 39,96,46,714/-. Thereafter, it was noticed by the Pr. Commissioner of Income Tax (PCIT) that the assessee has claimed deduction under section 35(2AB) of the Act of Rs. 20,12,21,103/- for R&D facility. However, the assessee had not submitted necessary documentary evidence i.e. Form 3CL issued by the prescribed authority (DSIR, New Delhi) which is mandatory to be fil....
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....PCIT by applying unamended Rule 35AC of the Income Tax Rules?" 5. Heard learned Senior Standing Counsel Mr. Nikunt Raval for the appellant. Learned Senior Standing Counsel submitted that the PCIT rightly invoked his jurisdiction under section 263 of the Act, since the report in Form 3CLA by the prescribed authority was not submitted on or before the assessment proceedings. The PCIT in his order has observed that the assessee has submitted only a certificate of recognition for in house R&D unit and therefore not entitled for deduction claimed under section 35(2AB) of Rs.20,12,21,103/-. Since, the assessing officer has not made requisite inquiry in relation to the deduction claimed under section 35(2AB) of the Act, the Commissioner passed a....
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....n the instant facts, we find that the assessment order was passed by the ld. Assessing Officer after making due inquiry regarding the claim of deduction u/s. 35(2AB) of the Act is, not erroneous and prejudicial to the interest of the Revenue. Accordingly, in the light of the above observations, we are hereby dismissing the order passed by ld. PCIT u/s. 263 of the Act" 7. In view of above it is not in dispute that the assessee at the time of original assessment has filed a copy of recognition of in-house R&D facility dated 25.08.2014. The assessee also filed the approval of in-house R&D facility dated 07.10.2015 in Form 3CM during the course of assessment with regard to the computation of deduction under section 35(2AB) of the Act. The ....