KUSUM HEALTHCARE PRIVATE LIMITED,DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 13(1), DELHI

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ITA 4309/DEL/2026Status: DisposedITAT Delhi31 August 2026AY 2020-214 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the deduction under Section 35(2AB) could be allowed if Form 3CL, now available, is found in order upon verification by the AO. Similarly, interest under Sections 234A, 234C, and 234F would not be charged if the return was filed within the extended due date due to Covid-19.

What were the facts?

The assessee claimed weighted deduction under Section 35(2AB) for R&D expenditure but lacked Form 3CL. The Assessing Officer disallowed the deduction. The assessee also contested interest levied under Sections 234A, 234C, and 234F.

What were the issues?

Whether weighted deduction under Section 35(2AB) can be allowed without Form 3CL at the time of assessment, and whether interest under Sections 234A, 234C, and 234F is leviable when the return is filed within the extended due date.

Which sections of the Income-tax Act were involved?

Section 35(2AB),Section 234A,Section 234C,Section 234F

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI VIKAS AWASTHY&

For Respondent: Shri Manoj Kumar, Sr. DR

PER VIKAS AWASTHY, JUDICIAL MEMBER: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 09.02.2026, for Assessment Year 2020-21.

2.

The assessee is engaged in the business of manufacturing and trading of pharmaceutical products having manufacturing facilities at Bhiwadi and Indore. The assessee maintains in house research and development unit. During the period relevant to assessment year under appeal, the assessee claimed weighted deduction of Rs.2,33,42,400-u/s.35(2AB) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). The assessee’s claim of deduction was disallowed by the Assessing Officer (AO) in the absence of Form 3CL.

ITA 4309/DEL/2026 KUSUM HEALTHCARE PRIVATE LIMITED 3. Shri Vishal Kalra, appearing on behalf of the assessee submits that admittedly, the assessee had claimed weighted deduction in respect of expenditure towards Research & Development activities, the weighted deduction, claimed by the assessee was not supported by Form 3CL. The AO in absence of Form 3CL has denied the benefit of weighted deduction u/s.35(2AB) of the Act to the assessee. The quantum of deduction is not in dispute. He stated that now Form 3CL for the relevant period is available with the assessee. He contended that the deduction u/s.35(2AB) of the Act can be allowed to the assessee subject of verification of the aforesaid Form.

3.1. The ld. Counsel further submits that the AO has levied interest u/s.234A and 234C of the Act. Whereas, the assessee had filed return of income within the extended period. He pointed that due date for filing return of income was extended for AY 2020-21 on account of Covid-19 pandemic.

4.

Per contra, Shri Manoj Kumar, representing the department supported the impugned order and prayed for dismissing appeal of the assessee. The ld. DR submits that the assessee was required to furnish Form 3CL before the due date for filing return of income, it is asessee’s own admission that the said form was not filed.

5.

Both sides heard, orders of the lower authorities examined. The assessee in appeal has primarily assailed two issues. In ground no. 1 to 6 of appeal, the assessee has assailed denial of weighted deduction u/s.35(2AB) of the Act in the absence of Form 3CL. The ld. Counsel for the assessee has placed on record a copy of Form 3CL dated 22.12.2022. Considering the fact that the expenditure towards research and development activities has not been disputed by the AO, we are of considered opinion that this issue can be re-examined by the AO in light of Form 3CL placed on record by the assessee. The AO shall consider Form 3CL placed on record by the assessee and, if the same is found to be in order, the benefit of weighted deduction u/s.35(2AB) of the Act shall be allowed to the assessee, in accordance with law.

6.

In ground of appeal no. 7 and 8, the assessee has assailed charging of interest u/s.234A, 234C and 234F of the Act. The contention of assessee is that AY 2020-21 being a Covid year the due date for filing return of income was extended. The assessee has filed its return of income within the extended period. This issue also requires factual verification. In case the assessee has filed return of income within extended due date, no interest u/s.234A, 234C and 234F of the Act shall be charged.

ITA 4309/DEL/2026 KUSUM HEALTHCARE PRIVATE LIMITED

7.

In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose, in the terms aforesaid

Order pronounced in the open court on Wednesday the 12th day of August, 2026.

Sd/- Sd/- AMITABH SHUKLA VIKAS AWASTHY ACCOUNTANT MEMBER JUDICIAL MEMBER Delhi Dated: 31-August-2026

ITA 4309/DEL/2026 KUSUM HEALTHCARE PRIVATE LIMITED Copy to: KUSUM HEALTHCARE PRIVATE LIMITED, 1 D-158A, OKHLA INDUSTRIAL ESTATE, SOUTH EAST DELHI-110020, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 13(1), 2 CIRCLE 13(1), CR BUILDING, DELHI- 110002 3 THE PCIT / CIT, 4 THE D.R., ITAT, DELHI BENCH 5 GUARD FILE

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