DCIT,CIRCLE-8 , PUNE vs. MAHALE ANAND THERMAL SYSTEMS PVT. LTD. , PUNE

ITA 127/PUN/2024Status: DisposedITAT Pune22 January 2025AY 2014-1522 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that R&D expenditure incurred in India is eligible for weighted deduction under Section 35(2AB). Capital R&D expenditure incurred outside India is eligible for deduction under Section 35(1)(iv). The Tribunal also dismissed the Revenue's grounds of appeal regarding disallowance of weighted deduction for AY 2017-18.

What were the facts?

The assessee claimed weighted deduction for R&D expenses under Section 35(2AB). The Assessing Officer disallowed a portion of this claim for expenses incurred outside India and treated product development expenses as capital expenditure. The CIT(A) allowed expenses incurred outside India under Section 35(1)(iv).

What were the issues?

Whether weighted deduction under Section 35(2AB) is allowable for R&D expenses incurred outside India, and whether capital R&D expenditure incurred outside India is deductible under Section 35(1)(iv).

Which sections of the Income-tax Act were involved?

Section 35(2AB),Section 35(1)(iv),Section 35(1),Section 35

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Cases cited in this judgment(5)Show list

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Heard together (2 matters)

CO No.12/PUN/2024
ITA No.228/PUN/2024

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER Assessment year : 2014-15

DCIT, Circle-8, Pune M/s. Mahle Anand Thermal Systems Pvt. Ltd. Vs. 29, Milestone Pune Nashik Highway, Chakan, Pune – 410501 PAN: AABCB2186L (Appellant) (Respondent) Assessment year : 2014-15

M/s. Mahle Anand Thermal Systems Pvt. Ltd. DCIT, Circle-8, Pune 29, Milestone Pune Nashik Highway, Vs. Chakan, Pune – 410501 PAN: AABCB2186L (Appellant) (Respondent) Assessment year : 2015-16

DCIT, Circle-8, Pune M/s. Mahle Anand Thermal Systems Pvt. Ltd. Vs. 29, Milestone Pune Nashik Highway, Chakan, Pune – 410501 PAN: AABCB2186L (Appellant) (Respondent)

Assessment year : 2015-16

M/s. Mahle Anand Thermal Systems Pvt. Ltd. DCIT, Circle-8, Pune 29, Milestone Pune Nashik Highway, Vs. Chakan, Pune – 410501 PAN: AABCB2186L (Cross Objector) (Respondent) Assessment year : 2017-18

DCIT, Circle-8, Pune M/s. Mahle Anand Thermal Systems Pvt. Ltd. Vs. 29, Milestone Pune Nashik Highway, Chakan, Pune – 410501 PAN: AABCB2186L (Appellant) (Respondent) Assessee by : Shri R D On

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