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

ITA 228/PUN/2024Status: DisposedITAT Pune22 January 2025AY 2017-1822 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that expenditure incurred outside India on R&D can qualify for weighted deduction under Section 35(2AB) if it meets the conditions. It also ruled that the eligibility of weighted deduction is not restricted by the quantification of expenditure by the prescribed authority, especially for assessment years prior to the amendment of Rule 6(7A).

What were the facts?

The assessee, engaged in manufacturing automobile ancillaries, claimed weighted deduction under Section 35(2AB) for R&D expenses, including those incurred outside India. The Assessing Officer disallowed a significant portion of this deduction, treating some product development expenses as capital expenditure.

What were the issues?

Whether expenditure on R&D incurred outside India is eligible for weighted deduction under Section 35(2AB), and whether the quantification by the prescribed authority limits the eligible deduction.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(5)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Heard together (5 matters)

ITA No.127/PUN/2024
ITA No.333/PUN/2024
ITA No.96/PUN/2024
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 Vs. M/s. Mahle Anand Thermal Systems Pvt. Ltd. (Appellant) 29, Milestone Pune Nashik Highway, Chakan, Pune – 410501 PAN: AABCB2186L (Respondent)

Assessment year : 2014-15

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

Assessment year : 2015-16

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

Assessment year : 2015-16

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

Assessment year : 2017-18

DCIT, Circle-8, Pune Vs. M/s. Mahle Anand Thermal Sy

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 35(2AB)

All 842 judgments and leading authorities on Section 35(2AB) →

Recent GST High Court judgments

Search GST case law →