NILSAN NISHOTECH SYSTEMS PRIVATE LIMITED,NAVI MUMBAI vs. DCIT 10(3), MUMBAI

This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre, Delhi [for short 'the CIT(A)] both dated 14.11.2023 for the AY 2018-19. The assessee raised the following grounds of appeal:

The assessee is a domestic company engaged in the business of manufacturing of equipment and services for pharmaceutical, biotechnology and food & beverage industry. The assessee filed the return of income for AY 2018-19 on 27.09.2018 declaring the income of Rs. 62,71,750/- under the normal provisions of the Income Tax Act, 1961 (for short 'the Act') and income of Rs. 1,16,96,119/- under section 115JB of the Act. The Assessing Officer (AO) noticed that the assessee has claimed a sum of Rs.76,09,458 as a weighted deduction under section 35(2AB) of the Act and called on the assessee to substantiate the claim interms of the nature of expenses etc. The AO also called on the assessee to furnish Form 3CM and Form 3CL in this regard. The AO after perusing the details furnished by the assessee regarding the expenses, both capital and revenue held that the expenses not entitled for deduction under section 35(2AB). Further the AO held that the assessee has only furnished the letter of approval from Department of Scientific & Industrial Research (DSIR) and not the required Forms. The AO also held that the assessee has claimed 200% of the expenses whereas the assessee if at all is eligible for only 150% of the weighted deduction. For these reasons the AO disallowed the entire deduction claimed by the assessee under section 35(2AB) of the Act. Aggrieved the assessee filed further appeal before the CIT(A). However, before the CIT(A) the assessee did not appear and therefore the CIT(A) dismissed the appeal in-limine. The assessee is in appeal before the Tribunal against the order of the CIT(A).