DIC INDIA LIMITED,KOLKATA vs. DCIT, CIRCLE 11(1),, KOLKATA

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ITA 1462/KOL/2025Status: DisposedITAT Kolkata10 July 2026AY 2021-20227 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The tribunal held that for capital expenditure on scientific research incurred after March 31, 1967, 100% deduction is allowable. The tribunal dismissed the ground related to CPC's adjustment as it did not emanate from the assessment order.

What were the facts?

The assessee claimed deduction for capital expenditure on scientific research. The AO disallowed the claim, and the CIT(A) allowed only 1/5th of the expenditure. The assessee appealed against this disallowance and an adjustment made by CPC.

What were the issues?

Whether 100% deduction is allowable for capital expenditure on scientific research incurred after 31.03.1967, and whether an issue not raised before the AO can be considered by the CIT(A).

Which sections of the Income-tax Act were involved?

Section 35(1)(iv),Section 35(2),Section 35(2)(ia),Section 143(1),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH AT KOLKATA

Before: SHRI PRADIP KUMAR CHOUBEY & SHRI RAKESH MISHRA

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH AT KOLKATA Before SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No(s). 1462/KOL/2025 Assessment Year(s) 2021-22 DIC India Limited DCIT, Circle-11(1), Kolkata Vs. (Appellant) (Respondent) PAN: AABCC0703C Appearances: Assessee represented by : Akkal Dudhwewala, FCA. Department represented by : Sanjib Kumar Paul, Addl. Sr. DR. Date of concluding the hearing : 30.06.2026 Date of pronouncing the order : 10.07.2026 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2021-22 dated 27.05.2024. 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,

“Expenditure on scientific research. 35. (1) In respect of expenditure on scientific research, the following deductions shall be allowed— … (iv) in respect of any expenditure of a capital nature on scientific research 42related to the business carried on by the assessee, such deduction as may be admissible under the provi-sions of sub-section (2) : … (2) For the purposes of clause (iv) of sub-section (1),— [(i) in a case where such capital expenditure is in-curred before the 1st day of April, 1967, one-fifth of the capital expenditure incurred in any previous year shall be deducted for that previous year; and the balance of the expenditure shall be deducted in equal instalments for each of the four immediately succeeding previous years ; (ia) in a case where such capital expenditure is incurred after the 31st day of March, 1967, the whole of such capital expenditure incurred in any previous year shall be deducted for that previous year :];” 6. The Ld. DR could not controvert the submission of the Ld. AR.

7.

We have considered the submissions made, gone through the facts of the case and perused the record and the order of the Ld. CIT(A).

Assistant Registrar ITAT, Kolkata Benches Kolkata

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