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Income Tax Appellate Tribunal, “A” BENCH, MUMBAI
IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SRI MAHAVIR SINGH, JM AND SRI ASHWANI TANEJA, AM (A.Y:2010-11) Asian Paints Industrial Dy. Commissioner of Income Tax Coatings Ltd. 10(1), Mumbai. 6A, Shanti Nagar, Santacruz (E) Vs. Mumbai-400020 PAN No.AADCA1832E Appellant .. Respondent .. Shri. K. Shivaram, AR Assessee by Shri. Rahul K. Haviani, AR .. Shri. Rajesh Kumar Yadav, DR Revenue by Date of hearing .. 08-12-2016 .. Date of pronouncement 08-12-2016 O R D E R PER MAHAVIR SINGH, JM:
This appeal by the assessee is arising out of the order of CIT (A)-21, Mumbai in appeal No. CIT (A)-21/IT/41/2013-14 dated 14-07-2014. The Assessment was framed by DCIT-10(1), Mumbai for the A.Y. 2010-11 vide order dated 14-03-2013 u/s 143(3) of the Income Tax Act, 1961 (hereinafter ‘the Act’).
The only issue in this appeal of assessee is against the order of CIT(A) in disallowing the claim of deduction u/s 35 (2AB) of the Act on account of expenditure on research and development and filed additional ground for grant of full deduction claimed by the assessee. For this assessee has raised following grounds: -
“1. The learned Commissioner of Income Tax (A)-21, Mumbai erred in allowing Rs.3.32 lacs being claim u/s 35(2AB) instead of Rs.44.28 lacs being amount shown in Form 3CL issued by DSIR. 2. The learned Commissioner of income Tax (Appeals)-21, Mumbai has failed to adjudicate the additional ground raised by the appellant for grant of full dedication claimed by the appellant in the return of income u/s 35(2AB) instead of restricting the claim to the extent of certificate issue by DSIR in Form NO. 3CL.”
3. At the outset, the learned Counsel for the assessee stated that first of all, the assessee claimed weighted deduction u/s 35(2AB) towards expenditure on Scientific Research and AO disallowed as the assessee has not submit the certificate from the ministry in Form No. 3CL. The form 3CL was issued only on 15-04-2014 and assessment was completed on 14-04-2013. The DSIR reduced the claim of assessee at Rs.3.32 lacs
Revenue expenses incurred on in-house R&D unit and for this assessee has raised additional ground before CIT(A) that weighted deduction ought to be allowed on this amount of Rs.3.32 lacs also. However, CIT(A) has not consider the additional ground and allowed deduction only to the extent of Rs.3.32 lacs. It was claimed by assessee that CIT(A) has not adjudicated the additional ground and has not considered Form No.3CL issued by DSIR. The learned Counsel for the assessee took us through the order of CIT(A) which is a non-speaking order and the final finding is given at Para 4.3 as under: -
“After considering the facts of the case and verifying the copy of certificate furnished by the appellant for this claim which is required under law. In the copy of certificate only Rs.3.32 lakhs is mentioned as eligible for deduction, hence only Rs.3.32 lakhs is allowed u/s.35(2AB) and rest of the amount disallowed by the AO is confirmed. This ground of Appeal is partly allowed.”
4. In view of the above the learned Counsel for the assessee stated that the issue needs reconsideration in entirety and also full deduction should have been allowed in view of the decision of Mumbai Tribunal in the case of ACIT Vs. Asian Paints Ltd. A.Y. 2007-08 dated 20-02-2013. He refers to the para 13 & 14 of the Tribunals order. On the query from the Bench, the learned Sr. DR has not objected to remanding the matter back to the file of the AO for afresh. He stated that let the AO examine the issue afresh in the light of Form No. 3CL issued by DSIR.
5. After considering the submissions of both the sides and going through the case records, we are of the view, lets this issue be examined afresh by the AO as the AO had no occasion to go through the Form No. 3CL issued by DSIR and moreover, an additional ground raised by assessee for grant of full deduction was actually not adjudicated by CIT(A). Accordingly, we restore this issue in entirety to the file of the AO for afresh adjudication after allowing reasonable opportunity of being heard to the assessee. The Appeal of the assessee is allowed for statistical purpose.
In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 08-12-2016.