2026 (5) TMI 1325

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....as raised following grounds of appeal: "1 On the facts and circumstances of the case, the order passed by the Commissioner of Income Tax. Appeal ADDL/JCIT (A)- 12 Mumbai [CIT(A) is bad both in the eye of law and on facts. 2 On the facts and circumstances of the case, the CIT(A) has erred both on facts and in law in confirming the addition made by the Ld. AO of the income at Rs. 334.59,200/- as against the returned income of Rs. 2,98,29,990/-. 3 On the facts and circumstances of the case, the CIT(A) has erred both on facts and in law in confirming the disallowance of an amount of Rs. 15,07,468/- on account of late deposit of employees' contribution to EPF and ESI. 4 (i) On the facts and circumstances of th....

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....owance of deduction u/s. 35(2AB) (Rs. 21,21,744/-). 5. Relevant facts are that the assessee had claimed an amount of Rs. 63,33,744/- towards R & D expenditure u/s. 35(2AB) of the Act. However, as per Form 3CL issued by the prescribed Authority under the Ministry of Science and Technology, a sum of Rs. 21,06,000/- only was certified and approved for weighted deduction u/s. 35(2AB) of the Act. In response to ld. AO's query, the assessee explained that it had incurred Rs. 31,66,872/- towards R & D Expenses during the year on which deduction at the rate of 200% was claimed at Rs. 63,33,744/-. However, considering that only Rs. 21,06,000/- was approved on R & D Expenditure vide the certificate in Form 3CL issued by the prescribed Authority, t....

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....enditure had been incurred by the assessee during the year. Hence even if weighted deduction is not allowed u/s. 35(2AB) in respect of part expenditure, the same is eligible for normal deduction u/s. 37(1) of the Act. 5.3. Ld. DR has relied on the orders of the Lower Authorities. 5.4. We have heard the rival submissions and perused the material on record. We note that the break- up of the expenditure claimed u/s. 35(2AB) is as under: Sr. No. Nature of Expenditure Amount 1 Salary Rs. 26,85,101/- 2 Material Consumption Rs. 4,57, 841/- 3 Other Expenses Rs. 23,930/-   Total Rs. 31,66,872/- Out of the above, expenditure to the extent of Rs. 20,06,000/- only was considered to be eligible ....