2023 (10) TMI 920

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....23 passed by the Income Tax Appellate Tribunal 'C' Bench, Ahmedabad in ITA No. 157/AHD/ 2022 for 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 evidenc....

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....nal was right in law by setting aside the exercise of jurisdiction u/s 263 of the Income Tax Act, 1961 by Ld. 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 req....

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....nt in form 3CL, would not be reason enough to deprive assessee's claim of deduction u/s. 35(2AB) of the Act. Accordingly, in 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 date....