2025 (2) TMI 1382

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....assessment year 2018-19. The Revenue is aggrieved by the order directing the Assessing Officer to take Form no. 3CL on record and after examining the same allow the deduction to the appellant under Section 35(2AB) of the Income Tax Act, 1961 ('Act' for short). 2. The respondent-assessee has filed a cross objection on the ground that the Assessing Officer has erred in not granting deduction @ 100% of the capital expenditure incurred on scientific research of Rs. 47,88,882/-. 3. The brief facts are that the respondent-assessee is a company engaged in the manufacture of specialty petroleum products, industrial oils and lubricants. The company filed its Return of Income (RoI) for the year under consideration on 29.11.2018 declaring a tota....

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..... 2,96,02,349/-. (weighted portion of revenue expenditure Rs. 1,57,64,849/- (+) Rs. 1,38,37,500/-, being weighted deduction of capital expenditure amounting to Rs. 1,53,75,000 less depreciation of Rs. 15,37,500/-) 4. The assessee challenged the same before the learned CIT(A). The learned CIT(A) has noted that appellant had submitted Form 3CLA before the DSIR on 31.10.2018, i.e. before the due date of filing the return. The assessee had furnished Form 3CLA (Audit report prescribed in Rule 6(7A) of the Income Tax Rules, 1962) electronically on 04.03.2020 owing to inadvertent oversight regarding the requirement of e-filing of Form 3CLA. Upon realization of the same, assessee got Form 3CLA filed electronically by the Chartered Accountant con....

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....under the old guidelines. Upon realization of the inadvertent error, fresh Form 3CLA was filed. As the learned CIT(A) has rightly found, the fact of the assessee having incurred expenditure on in-house R&D facility is not disputed by the Assessing Officer. Thus, the only issue is about the admissibility of the weighted portion of deduction as per Section 35(2AB) of the Act. 9. The following observations and findings recorded by the learned CIT(A) in para 4.6 and 4.7 are relevant for the purpose : "4.6. From the above, it is noted that there was delay in furnishing the audit report in Form 3CLA to the prescribed authority as required under Rule 6(7A) of the IT Rules, which resulted in the delay in furnishing Form 3CL and by the t....