MAHLE ANAND THERMAL SYSTEMS PRIVATE LIMITED,PUNE vs. ACIT CIRCLE 9, PUNE
What did the Tribunal hold?
The Tribunal held that quantification of expenditure by the prescribed authority is a mandatory condition for claiming Section 35(2AB) deduction from July 1, 2016. The assessee's adjournment request was dismissed.
What were the facts?
The assessee claimed weighted deduction under Section 35(2AB) for assessment year 2017-2018. The prescribed authority, DSIR, rejected the assessee's application for this deduction.
What were the issues?
Whether the assessee is eligible for weighted deduction under Section 35(2AB) when the DSIR rejected the application. Whether the NFAC adjudicated the alternative claim of deduction under Section 35(1)(iv) r.w.s.37.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE “A” BENCH : PUNE : [HYBRID HEARING]
Before: SHRI SATBEER SINGH GODARA & SHRI GD PADMAHSHALI,
Date of Hearing : 27.05.2024 Date of Pronouncement : 28.05.2024 ORDER PER SATBEER SINGH GODARA, J.M. :
This assessee’s appeal for assessment years 2017- 2018, arise against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/ 250/2023-24/1058843681(1), dated 18.12.2023, involving proceedings u/s.143(3) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties. Case files perused.
The assessee pleads the following substantive grounds in the instant appeal :
2 ITA.No.247/PUN./2024
3 ITA.No.247/PUN./2024
It emerges during the course of hearing that the assessee has filed its adjournment request reading as under :
Suffice to say, there could be hardly any dispute that the assessee’s sole substantive grievance herein seeks to claim it’s sec.35(2AB) weighted deduction claim rejected in 4 ITA.No.247/PUN./2024 both the learned lower authorities respective order(s). The assessee is fair enough indeed in it’s foregoing adjournment averments that the prescribed authority i.e., Department of Scientific and Industrial Research (“DSIR”) has already rejected it’s application “Form-3CL” on March 18, 2024. Faced with this situation, we are of the considered view in light of Rule6(7A)(b)(ii) that quantification of the impugned expenditure by the above prescribed authority, for the purpose of claiming sec.35(2AB) relief, indeed forms a mandatory condition from 01.07.2016 onwards relevant to assessment year 2017-2018 before us. We thus see no merit in the assessee’s foregoing adjournment request at this stage in very terms subject to all just exceptions.
Learned counsel at this stage fairly informed us that the assessee has filed it’s sec.154 rectification before the lower appellate authority regarding alternative claim of deduction u/sec.35(1)(iv) r.w.s.37 of the Act. He sought to buttress the point that the learned NFAC has nowhere adjudicated the same. Without commenting anything on merits, we conclude in this factual backdrop that it shall be very much open to the assessee to pursue it’s above stated sec.154 rectification, if any, as per law in very terms. Ordered accordingly.
5 ITA.No.247/PUN./2024
This assessee’s appeal is partly allowed for statistical purposes in above terms.
Order pronounced in the open Court on 28.05.2024.
More judgments on Section 35(2AB)
- Aeon Formulations Private Limited, Chennai vs Income Tax Officer, Corporate Ward 2(1)…ITA 2481/CHNY/2026[2018-19]Status: Disposed12 Oct 2026AY 2018-19
- Devarsons Industries Pvt.Ltd., Ahmedabad vs The D.C.I.T. Circle-1(1)(1), AhmedabadITA 2327/AHD/2026[2018-19]Status: Disposed29 Sept 2026AY 2018-19
- Ceat Limited, Mumbai vs Assisstant Commissioner of Income-Tax…ITA 8146/MUM/2025[2020-21]Status: Disposed29 Sept 2026AY 2020-21
- Forbes Marshall Pvt. Ltd., Pune vs Income Tax Officer Circle 8, PuneITA 3206/PUN/2025[2017-18]Status: Disposed28 Sept 2026AY 2017-18
- Pochjraja Industries Ltd., Hosur vs ACIT, Circle-1, HosurITA 1072/CHNY/2025[2013-14]Status: Disposed23 Sept 2026AY 2013-14
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