TaxTMI 
TaxTMI 
2025 (12) TMI 301
X X X X Extracts X X X X
X X X X Extracts X X X X
....n, the petitioner has challenged the action on the part of the respondents in not favourably considering the applications dated 31.03.2016 and 30.03.2017 seeking recognition and approval for the petitioner's R&D facility under Section 35(2AB) of the Income Tax Act, 1961 for the FY 2015-16 & FY 2016-17. 2. Learned counsel for the Petitioner submits that the Petitioner had submitted applications, seeking recognition and approval for the R&D facility, which were filed in March 2016 and March 2017 respectively, for the concerned financial years, and various follow up applications were also subsequently filed by the petitioner. However, the request of the petitioner for necessary approval was not heeded to. It is submitted that the respondent....
X X X X Extracts X X X X
X X X X Extracts X X X X
....said Centre since inception i.e., even prior to recognition being accorded is entitled to the benefit under Section 35 (2AB) of the ITA. The legislative intent behind this provision is to encourage innovation, research and development in India and non-grant of the benefit under Section 35 (2AB) of the Act defeats the legislative intent. The Auditor's certificate on record is categorical that the Petitioner is maintaining separate sets of accounts for the Gurgaon and the Rohtak Centres and the necessary details of the expenditure incurred therein have also been submitted as far back as on 31st October, 2011 and even thereafter. Even the Form 3CM which was issued by the DSIR under cover letter dated 2nd February, 2015, mentions both the G....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed, that would be sufficient to hold that the assessee fulfils the conditions laid down in the aforesaid provisions. The discussion, which is undertaken by the Gujarat High Court while interpreting, the aforesaid provisions, is extracted below (Pg. 245) : "7....The lower authorities are reading more than what is provided by law. A plain and simple reading of the Act provides that on approval of the research and development facility, expenditure so incurred is eligible for weighted deduction 8. The Tribunal has considered the submissions made on behalf of the assessee and taken the view that the section speaks of: (i) development of facility; (ii) incurring of expenditure by the assessee for the developmen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....intention behind the above enactment and observed that to boost the research and development facility in India, the Legislature has provided this provision to encourage the development of the facility by providing deduction of weighted expenditure. Since what is stated to be promoted was development of facility, the intention of the Legislature by making the above amendment is very clear that the entire expenditure incurred by the assessee on development of facility, if approved, has to be allowed for the purpose of weighted deduction. 10. We are in full agreement with the reasoning given by the Tribunal and we are of the view that there is no scope for any other interpretation and since the approval is granted during the previous ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....earch, development of new technologies, obtaining patent rights, copyrights and know-how." 7. It is further pointed out that after the order dated 02.08.2021 was passed, during the pendency of the present petition, the petitioner has received the following communication dated 30.01.2021. 8. Again, it appears that the concerned authorities have failed to consider that there is no 'in principle' impediment to the grant of requisite certificates to the petitioner for the said financial years. 9. In the circumstances, the present petition is disposed of with a direction to the respondents to examine the matter afresh and to consider the grant of requisite certificate/ issuance of forms for the FY 2015-16 and FY 2016-17. Let the same be....
X X X X Extracts X X X X
X X X X Extracts X X X X
....: Nil, Dated: 14th December, 2017 as per DSIR, New Delhi guidelines, vide letter No: Order in Form No. TU/IV- 15 (1551)/35 (2AB) 3CM/ (1352)/2018, dated: 6th July, 2018. Yours Sincerely 31/1at 0212 02/08/2021 (Dr. Anil Kumar) Scientist 'C' Tel .: 011 - 26590579 Department of Scientific and Industrial Research (DSIR). Room No. - 04, Hall "B", Ministry of Science and Technology, Government of India, Technology Bhawan, New Mehrauli Road New Delhi-110016 Document 2 Dated: 30/01/2025 No. TU/IV-15(1551)/2025 To Shri Shravan Rewari. Managing Director (MD), M/s Applied Research International Pvt Ltd, 46/13, EBlock, Phase II, Okhla Industrial Area, New Delhi- 110 020. Sub: Recommendation of the department on request of M/s Applied Re....