VIRCHOW BIOTECH PRIVATE LIMITED,HYDERABAD vs. INCOME TAX OFFICER, WARD17(4), HYDERABAD

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ITA 1581/HYD/2017Status: DisposedITAT Hyderabad28 May 2021AY 2013-146 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee failed to provide the required approval for its in-house R&D facility in Form 3CL. Therefore, the disallowance of the weighted deduction was justified.

What were the facts?

The assessee claimed weighted deduction under Section 35(2AB) for expenses incurred on an in-house R&D facility. The Assessing Officer disallowed this deduction, a decision upheld by the CIT(A).

What were the issues?

Whether the assessee was eligible for weighted deduction under Section 35(2AB) without the necessary approval from the DSIR.

Which sections of the Income-tax Act were involved?

Section 35(2AB)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD ‘ A ‘ BENCH, HYDERABAD.

Before: SHRI S.S. GODARA & SHRI LAXMI PRASAD SAHU

For Appellant: Shri S.Rama Rao, Advocate

O R D E R Per Shri S.S. Godara, J.M. : This assessee’s appeal for Asst. Year 2013-14 arises from the Commissioner of Income Tax (Appeals)-5, Hyderabad’s order dt.30.06.2017 passed in case No.0076/ 2016-17/CIT(A)-5/10300/2016-17 in proceedings under Section 143(3) of Income Tax Act, 1961 (‘the Act’).

Heard both the parties. Case file perused.

2.

The assessee's sole substantive grievance raised in the instant appeal seeks to delete section 35(2AB) weighted deduction disallowance of Rs.5.62,72,811 made in the course of assessment framed on 21.3.2016 and upheld in the CIT(A)’s lower appellate order as under :

3.

We have heard rival submissions against and in support of the impugned section 35(2AB) weighted deduction disallowance. We find no merit in the assessee's argument since it has failed to file any approval of an in-house R&D facility granted by the DSIR in form 3CL. We therefore see no reason to interfere with the CIT(A)’s conclusion affirming the impugned disallowance.

The same stands upheld.

4.

This assessee's appeal is dismissed.

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