THE PR COMMISSIONER OF INCOME TAX CIT (A) vs. M/S BHARATH FRITZ WERNER LTD

THE PR COMMISSIONER OF INCOME TAX CIT (A) 5TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORAMANGALA BENGALURU - 560 095

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE - 11(2) PRESENT ADDRESS ACIT CIRCLE - 1(1)(1) 2ND FLOOR, BMTC BUILDING 80 FEET ROAD, KORAMANGALA BENGALURU - 560 095 …APPELLANTS (BY SRI. RAVI RAJ Y V.,ADVOCATE A/W SRI. DILIP M, ADVOCATE)

The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 (for short, ‘the Act’) questioning the correctness and legality of order dated 30.9.2021 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.2046/Bang/2019 for the assessment year 2010-11, raising the following substantial questions of law: “1. Whether, on the facts and in the circumstances of the case and law, the Tribunal is right in law in allowing deduction under section 35(2AB) of the Act when the assessee has failed to submit Form 3CL

Whether, on the facts and in the circumstances of the case and law, the Tribunal’s order can be said as perverse in nature in holding that once Research and development fatality has been approved by the DSIR, the deduction under section 35(2AB) of the act has to be allowed without satisfying the other conditions laid down in said section and when the mandatory conditions set out in section 35(2AB) of the act are not satisfied?

Whether on facts and in the circumstances of the case, the Tribunal is right in law in holding that assessee is entitled for deduction under section 35(2AB) even though the mandatory conditions are not satisfied by assessee and ignoring the findings of assessing authority?”

It is noticed that the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal would not be maintainable at the instance of the revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the

On the other hand, learned counsel for the revenue submits that he be granted liberty to revive the appeal in case the matter falls within the exceptions under the aforesaid Circular dated 17.09.2024 and Circular No.5/2024 dated 15.03.2024.

In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding.