WEBFIL LIMITED,KOLKATA vs. DCIT, CIRCLE-6(2), KOLKATA, KOLKATA

The Ld.AR submits that the assessee is engaged in the business of manufacturing and sale of filaments and electronic goods. The assessee incurred expenditure for scientific research for the purpose of its business. The AO denied deduction u/s 35(2B) of the Income Tax Act, 1961 (in short “Act”) for non- submitting approval from prescribed authority. The said ground was raised before the Ld.CIT(A) as additional ground which was not adjudicated by Ld.CIT(A) and prayed to remand the matter to the file of AO for fresh adjudication.

Further, Ld.AR submits the assessee raised another additional ground before Ld.CIT(A) in respect of disallowance made by the AO on account of outstanding sales tax payment. No adjudication has conducted by Ld.CIT(A) and prayed to remand the matter to Ld.CIT(A) for its fresh adjudication. Ld. DR did not controvert the same.

Heard rival submissions and perused the material available on record. It is noted from the assessment record that the assessee debited an amount of Rs.22,87,869/- on account of scientific research expenditure. The AO found the deduction has claimed by the assessee in tax audit report is Rs.34,31,804/-. Further, he found that the assessee debited a sum of Rs.7,22,522/- to the P&L Account for miscellaneous expenses to the extent on account of amortization of scientific research. The AO disallowed the above said amounts [Rs.34,31,804/- + Rs.7,22,522/- = Rs.41,54,326/-] and added to the total income of the assessee. However, we find no adjudication by Ld. CIT(A). Likewise, the AO also added an amount of Rs.11,04,468/- on account of outstanding sales tax payment. We find no adjudication by Ld. CIT(A) on this issue. Taking into consideration the submissions of Ld.AR and in the interests of justice, the grounds raised by the assessee before this Tribunal are remanded back to the file of Ld.CIT(A) for its fresh adjudication. The assessee is liberty to file evidences, if any, in support of its claim. Therefore, Ground No.1 to 4 are allowed for statistical purposes.

Ground No.5 is general in nature, needs no adjudication and it is dismissed.

In the result, the appeal of the assessee is partly allowed for statistical purposes.