2026 (7) TMI 888

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....1.1 The Registry has informed that the appeal is barred by limitation by 341 days. The assessee has filed a petition along with an affidavit for condonation of delay explaining the reasons that the appellate order dated 27.05.2024 was forwarded to the tax counsel in June 2024, but due to a medical emergency in the family of the counsel, he had to travel outstation and inadvertently had omitted to file the appeal, and upon resuming office in August 2024, the filing of the appeal escaped his attention and remained unattended until June 2025. When the assessee received a show cause notice for penalty u/s 270A of the Act, it prompted the immediate collation of papers and filing of the present appeal resulting in a delay of 346 days. After perus....

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....FAC / JAO be directed to re-compute the total assessable income for the relevant year with reference to the returned income of Rs. 109,77,90,490/- 3. For that the appellant craves leave to submit additional grounds and/or amend or alter the grounds already taken either at the time of hearing of the appeal or before." 3. Brief facts of the case are that assessee had filed the return of income for AY 2021-22 on 27.02.2022 declaring total income of Rs.109,77,90,490/-, which was processed u/s 143(1) of the Act computing the total income at Rs.110,41,43,440/-. The Assessing Officer (hereinafter referred to as Ld. 'AO') noted that the assessee had claimed a deduction for capital expenditure on scientific research u/s 35(1)(iv)....

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....en examined. The Ld. AR submitted that the issue requires a brief consideration of the fact that the Ld. CIT(A) had erred in holding that the assessee is entitled to only one-fifth of the deduction for capital expenditure incurred on scientific research u/s 35(1)(iv) read with section 35(2)(i) of the Act, whereas as per law as applicable for the expenditure incurred after 31st March, 1967 onwards being section 35(2)(ia), an assessee is legally entitled to 100% of the deduction claimed for the capital expenditure incurred on scientific research and in view of the legal position, the impugned disallowance deserves to be deleted. Our attention was drawn to clause (ia) of sub-section (2) of section 35 read with sub-section (1) of section 35 of ....

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....5(2)(ia); we have no hesitation in reversing the finding of the Ld. CIT(A) and hereby direct the Ld. AO to allow 100% of the deduction claimed at Rs.88,54,987/- as per clause (ia) of sub-section (2) of section 35 of the Act. Hence, Ground No. 1 is allowed and the findings of the Ld. CIT(A) are reversed. 8. As regards Ground No. 2, the Ld. CIT(A) dismissed the issue raised before him as per his findings as under: "6. Ground No.1:- In this ground, the appellant has contested the adjustment of Rs. 63,52,950/- made by the CPC while processing the return of income. 6.1 The submission filed by the appellant is re-produced in para 5 above. 6.2 I have perused the assessment order, grounds of appeal and submission filed....