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“scientific research expenditure”

Business ExpensesSection 35Section 3555 judgments

The decision most relied on for scientific research expenditure is CIT v. Claris Lifesciences Ltd. (326 ITR 251), cited in 196 judgments on BharatTax.

Leading authorities on scientific research expenditure

CIT v. Claris Lifesciences Ltd.
326 ITR 251 · 2010 · High Court
196
citing judgments

If approval from the Department of Scientific and Industrial Research (DSIR) for an in-house R&D centre is granted during the previous year, the assessee is entitled to claim weighted deduction under section 35(2AB) for the entire expenditure incurred during that year.

CIT v. Sadan Vikas (India) Ltd.
335 ITR 117 · 2011 · High Court
112
citing judgments

Weighted deduction under Section 35(2AB) is allowable for R&D expenditure incurred even if the approval from the DSIR is granted in a subsequent assessment year, provided the application for approval was made in time. The assessee is entitled to the deduction if the approval is based on verification of details submitted.

Zandu Pharmaceuticals Works Ltd. v. CIT
350 ITR 366 · 2013 · High Court
68
citing judgments

Expenses, including scientific research or head office expenses, cannot be allocated to units eligible for deductions under sections 80IB or 80IC unless there is a clear nexus between the expenditure and the specific eligible unit for computing the deduction.

Cummins India Ltd. v. DCIT
96 Taxmann.com 576 · 2018 · ITAT
67
citing judgments

The weighted deduction for scientific research expenditure under Section 35(2AB) is allowable, clarifying that the requirement for the prescribed authority to approve or quantify the expenditure from year to year became effective only from April 1, 2016, through amendments to Rule 6(7A)(b).

CIT v. Cadila Healthcare Ltd.
31 Taxmann.com 300 · 2013 · High Court
65
citing judgments

Section 35(2AB), an incentive provision, allows weighted deduction for expenditure 'on in-house research or development facility' even if related activities like clinical trials are conducted externally, provided they are for the in-house research. This requires a liberal interpretation of the provision.

Sun Pharmaceutical Industries Ltd. v. Pr.CIT
162 ITD 484 · 2017 · ITAT
47
citing judgments

The approval of an in-house R&D centre through Form 3CM is the primary document for claiming weighted deduction under Section 35(2AB) for scientific research expenditure. The case clarifies the significance of this form and the role of the prescribed authority (DSIR) in the approval process.

Tejas Network Ltd. v. DCIT
60 Taxmann.com 309 · 2015 · High Court
41
citing judgments

The Assessing Officer cannot question the correctness of the certificate issued by the prescribed authority for claiming weighted deduction under section 35(2AB) for scientific research expenditure. The deduction is limited to the amount approved and certified by the competent authority.

Banco Products (India) Ltd. v. DCIT
95 Taxmann.com 132 · 2018 · High Court
36
citing judgments

A subsequent approval of Form 3CL does not invalidate a claim for deduction under Section 35(2AB) if the expenditure was otherwise approved. The deduction is available for expenditure incurred, even if the approval format was obtained later.

Judgments citing scientific research expenditure

Reliance Industries Ltd., Mumbai vs. ACIT Circle 3(4), Mumbai

In the result, both the appeals of the assessee and both the appeals of the revenue are treated as partly allowed

ITA 2317/MUM/2022[2018-19]Status: DisposedITAT Mumbai18 Oct 2023AY 2018-19

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

Section 14ASection 250(6)Section 32Section 35

provisions of sec.35(2AB) of the Act empowers DSIR to approve the Scientific Research facility only and it does not empower certification of scientific research expenditure. Accordingly it was contended that the amendment made in the Income tax Rules without making enabling provision 9 Reliance Industries

Marksans Pharma Ltd, Mumbai vs. CIT (Appeals), NFAC, Mumbai

In the result, the appeal by the assessee is allowed

ITA 1717/MUM/2023[2014-15]Status: DisposedITAT Mumbai22 Aug 2023AY 2014-15

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhail

For Appellant: Shri Vijay MehtaFor Respondent: Smt. Mahita Nair
Section 142(1)Section 143(2)Section 143(3)Section 154Section 250Section 35

copy of Form No. 3CL in relation to granting of weighted deduction section 35(2AB) of the Act. Since the DSIR approved scientific research expenditure of Rs. 1800.89 lakh being the aggregate of revenue expenditure incurred of Rs. 1762.77 lakh and capital expenditure of Rs. 38.12 lakh, the AO vide

Fdc Limited, Mumbai vs. PCIT, Cir-1, Mumbai

In the result, the appeal of the assessee is partly allowed

ITA 1031/MUM/2023[2018-19]Status: DisposedITAT Mumbai02 Aug 2023AY 2018-19

Bench: Shri B.R. Baskaran (Am) & Shri Rahul Chaudhary (Jm)

Section 143(3)Section 144BSection 263Section 35Section 35(1)Section 35(1)(i)Section 37(1)Section 80G

Further, Form 3CL is one of the forms prescribed in Rule 6(7A)(b) of the Rules for quantifying scientific research expenditure by the prescribed authority. Since the rules prescribe for examination of the above said form, it is the duty of the AO to verify the same before allowing

J.B.Chemicals & Pharmaceuticals Ltd., Mumbai vs. DCIT -CC -2(1), Mumbai

The appeals of the assessee are partly allowed

ITA 2009/MUM/2019[2013-14]Status: DisposedITAT Mumbai27 Jun 2023AY 2013-14

Bench: Shri Aby T. Varkey () & Ms. Padmavathy S. ()

Section 234ASection 234CSection 35

debited and claimed in the return of income. We have already held that the approval by DSIR of the facility from which the scientific research expenditure are incurred is the deciding factor for allowing the expenditure, which in assessee’s case is available on record. The section allows the expenditure

J.B.Chemicals & Pharmaceuticals Ltd., Mumbai vs. DCIT -CC -2(1), Mumbai

The appeals of the assessee are partly allowed

ITA 2008/MUM/2019[2012-13]Status: DisposedITAT Mumbai27 Jun 2023AY 2012-13

Bench: Shri Aby T. Varkey () & Ms. Padmavathy S. ()

Section 234ASection 234CSection 35

debited and claimed in the return of income. We have already held that the approval by DSIR of the facility from which the scientific research expenditure are incurred is the deciding factor for allowing the expenditure, which in assessee’s case is available on record. The section allows the expenditure

J.B. Chemicals and Pharmaceutical Ltd, Mumbai vs. DCIT Cen Cir 2(1), Mumbai

The appeals of the assessee are partly allowed

ITA 4657/MUM/2018[2015-16]Status: DisposedITAT Mumbai27 Jun 2023AY 2015-16

Bench: Shri Aby T. Varkey () & Ms. Padmavathy S. ()

Section 234ASection 234CSection 35

debited and claimed in the return of income. We have already held that the approval by DSIR of the facility from which the scientific research expenditure are incurred is the deciding factor for allowing the expenditure, which in assessee’s case is available on record. The section allows the expenditure

J.B. Chemicals and Pharmaceutical Ltd, Mumbai vs. DCIT Cen Cir 2(1), Mumbai

The appeals of the assessee are partly allowed

ITA 4656/MUM/2018[2014-15]Status: DisposedITAT Mumbai27 Jun 2023AY 2014-15

Bench: Shri Aby T. Varkey () & Ms. Padmavathy S. ()

Section 234ASection 234CSection 35

debited and claimed in the return of income. We have already held that the approval by DSIR of the facility from which the scientific research expenditure are incurred is the deciding factor for allowing the expenditure, which in assessee’s case is available on record. The section allows the expenditure

Regan Powertech Pvt Ltd, Chennai vs. DCIT, CC-5(1), Chennai

In the result, appeal filed by the assessee in ITA No

ITA 572/CHNY/2021[2016-17]Status: DisposedITAT Chennai07 Dec 2022AY 2016-17

Bench: Shri Mahavir Singh, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita Nos.571 & 572/Chny/2021 िनधा"रण वष" /Assessment Year: 2015-16 & 2016-17 V. M/S.Regen Powertech Pvt. Ltd., The Dy. Commissioner – Sivanandam, Of Income Tax, No.1, Pulla Avenue, Corporate Circle-5(1), Shenoy Nagar, Chennai. Chennai- 600 030. [Pan: Aadcr 5531 M] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.B.Ramakrishnan, FCAFor Respondent: Mr.S. Marudhu Pandian, CIT
Section 32(1)(iia)Section 35Section 35(1)(i)Section 35(1)(iv)Section 37(1)

assessee, where he has sustained additions made towards disallowance of excess depreciation, disallowance of license fee u/s.37(1) of the Act, disallowance of scientific research expenditure u/s.35(1)(iv) of the Act, disallowance of weighted deduction towards in- house R & D expenditure u/s.35(2AB) of the Act. Aggrieved

Regan Powertech Pvt Ltd, Chennai vs. DCIT, CC-5(1), Chennai

In the result, appeal filed by the assessee in ITA No

ITA 571/CHNY/2021[2015-16]Status: DisposedITAT Chennai07 Dec 2022AY 2015-16

Bench: Shri Mahavir Singh, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita Nos.571 & 572/Chny/2021 िनधा"रण वष" /Assessment Year: 2015-16 & 2016-17 V. M/S.Regen Powertech Pvt. Ltd., The Dy. Commissioner – Sivanandam, Of Income Tax, No.1, Pulla Avenue, Corporate Circle-5(1), Shenoy Nagar, Chennai. Chennai- 600 030. [Pan: Aadcr 5531 M] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.B.Ramakrishnan, FCAFor Respondent: Mr.S. Marudhu Pandian, CIT
Section 32(1)(iia)Section 35Section 35(1)(i)Section 35(1)(iv)Section 37(1)

assessee, where he has sustained additions made towards disallowance of excess depreciation, disallowance of license fee u/s.37(1) of the Act, disallowance of scientific research expenditure u/s.35(1)(iv) of the Act, disallowance of weighted deduction towards in- house R & D expenditure u/s.35(2AB) of the Act. Aggrieved

Navin Flurine International, Mumbai vs. Dy CIT 7(3)(1), Mumbai

In the result, appeal of the Revenue is fully dismissed

ITA 6532/MUM/2019[2012-13]Status: DisposedITAT Mumbai30 Nov 2022AY 2012-13

Bench: Shri Aby T Varkey & Shri Gagan Goyal

For Appellant: Ms. Aarti Vissanji &For Respondent: Sh. Manoj Kumar Sinha, DR
Section 115JSection 14ASection 35Section 41(1)

appellant is eligible for weighted deduction U/s. 35(2AB) of Rs. 14, 40, 63,055/- in respect of scientific research expenditure incurred of Rs. 7, 20, 31,528/-. 3. The amount of Rs. 2, 25, 60, 05,954/- (net) received on sale of Carbon Credit is a "capital receipt ... year ending 31st March 2007. iii. Non-applicability of provisions of Section 14A. iv. Claim of weighted deduction in respect of Scientific Research expenditure u/s. 35(2AB). v. Setoff of MAT credit u/s. 115JAA of the I.T. Act. “ 6. Assessee Company engaged in the business of manufacturing and trading

M/S Infosys Limited, Bangalore vs. The Deputy Commissioner of Income Tax, Circle-3(1)(1), Bangalore

In the result, the appeal filed by the assessee stands partly allowed

ITA 718/BANG/2017[2012-13]Status: DisposedITAT Bangalore28 Nov 2022AY 2012-13

Bench: Shri Chandra Poojaria & Smt. Beena Pillaiassessment Appeal No. Appellant Respondent Year M/S. Infosys Ltd., The Assistant Electronic City, Commissioner It(Tp)A No. Hosur Road, Of Income Tax, 2012-13 718/Bang/2017 Bangalore – 560 Circle – 100. 3(1)(1), Pan: Bangalore. Aaaci4798L : Shri Padamchand Khincha, Assessee By Ca : Shri K.V. Arvind & Shri Dilip, Revenue By Standing Counsels For Dept. Date Of Hearing : 15-09-2022 Date Of Pronouncement : 28-11-2022 Order Per Beena Pillaipresent Appeal Arises Out Of Final Assessment Order Dated 28/02/2017 Passed By The Ld.Acit, Circle – 3(1)(1), Bangalore For A.Y. 2012-13 On Following Grounds Of Appeal: General & Legal Grounds 1. The Order Passed By The Learned Assessing Officer & The Directions Of Hon’Ble Drp To The Extent Prejudicial To The Appellant Is Bad In Law & Liable To Be Quashed. Grounds On Denial Of Deduction Claimed Under Section 10Aa In Respect Of 4 Sez Units Viz., Chennai – Unit 1, Chandigarh, Mangalore - Unit 1 & Pune Unit 1 2. The Learned Assessing Officer Has Erred In Denying Deduction Claimed Under Section 10Aa In The Return Of Income Totally Amounting To Rs. 2227,82,65,630 In Respect

Section 10ASection 14ASection 2Section 2(24)Section 40

Grounds on allowability of deduction u/s 35(2AB) for a sum of Rs.249,91,38,982 in respect of Scientific Research Expenditure incurred from 1.4.2011 to 22.11.2011 amounting to Rs.124,95,69,491 48. The learned AO has erred in not allowing deduction under section 35(2AB) in respect ... scientific research expenditure incurred from 1.4.2011 to 22.11.2011 amounting to Rs.124,95,69,491 49. The learned AO has erred in not appreciating that as deduction u/s 35(2AB) for scientific research expenditure incurred from 23.11.2011 to 31.3.2012 was claimed in the return of income and the same has been

ACIT- Circle-6(2)(1), Mumbai vs. Cg Power & Industrial Solution Ltd. (Formerly Known As Crompton Greaves Ltd.), Mumbai

In the result, the appeal filed by the assessee is treated as allowed and the appeal of the revenue is dismissed

ITA 2955/MUM/2018[2010-11]Status: DisposedITAT Mumbai25 Nov 2022AY 2010-11
Section 14Section 14ASection 35Section 80I

submitted that the Ld CIT(A) has not only sustained the disallowance, but also enhanced the same only for the reason that the scientific research expenditure certified by DSIR was less than that claimed by the assessee or not certified. He submitted that the Ld CIT(A) has not properly ... favour of the 9 M/s. CG Power & Industrial Solution Ltd. (formerly known as Crompton Greaves Ltd.) assessee by holding that the approval of scientific research expenditure by DSIR is not a mandatory condition for allowing weighted deduction in that year. The decision rendered by the co-ordinate bench

DCIT -CC-5(2), Mumbai vs. M/S. Usv Pvt. Ltd, Mumbai

Accordingly, respectfully following the above decisions of the Tribunal we refrain to interfere with the order passed by the CIT(A) on this issue. Ground No. 8 raised by the Revenue is, therefore, ...

ITA 2575/MUM/2021[2014-15]Status: DisposedITAT Mumbai07 Sept 2022AY 2014-15
For Appellant: Shri Paras Savla and Shri Pratik PodarFor Respondent: Shri Achal Sharma
Section 143(3)Section 253(3)Section 35Section 40

held: ―8. It is seen that as rightly contended on behalf of the assessee, section 35 of the Act grants deduction for Scientific Research expenditure, under the circumstances prescribed there-under, on compliance of the conditions laid down in various provisions of section 35. Now, whereas in some cases, like

Hemal Maganlal Shah, Mumbai vs. CIT (A) NFAC, Delhi

In the result, appeal filed by the assessee is dismissed

ITA 285/MUM/2022[2010-11]Status: DisposedITAT Mumbai10 Aug 2022AY 2010-11

Bench: Shri Aby T Varkey & Shri Gagan Goyalhemal Maganlal Shah 84, 4Th Floor, Pankaj-B, Lbs Road, Ghatkopar (W), Mumbai-400086. Pan: Amfps8271G ...... Appellant Vs. The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Mumbai. ..... Respondent Appellant By : Sh. H.M. Shah Respondent By : Sh. Prasoon Kabra Date Of Hearing : 17/05/2022 Date Of Pronouncement : 10/08/2022 Order Per Gagan Goyal, A.M:

For Appellant: Sh. H.M. ShahFor Respondent: Sh. Prasoon Kabra
Section 143(3)Section 148Section 250Section 271(1)Section 274Section 69C

Assistant Commissioner of Income-tax, 1(1)* Section 35 read with section 271(1)(c) of the Income-t Act, 1961 - Scientific research expenditure (Sub-section (2AB)) - Assessment year 2003-04 - Whether where out of 9 items in respect of capital expenditure of research and development, bills or supporting documents

Deputy Commissioner of Income Tax (Ltu), Circle- 1, Bangalore vs. M/S. Kennametal India Limited ( Earlier Known As Wide (India) Limited), Bangalore

In the result, the appeal filed by the revenue is treated as allowed for statistical purpose

ITA 2553/BANG/2019[2001-02]Status: DisposedITAT Bangalore29 Apr 2022AY 2001-02

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessmentyear:2001-02

For Appellant: Shri S. Parthasarathi, A.RFor Respondent: Shri T. RoumuanPaite, D.R
Section 133ASection 35(1)Section 35(1)(iv)

business of manufacture of hard metal and hard metal products. The assessee claimed deduction u/s 35(1) of the Act in respect of scientific research expenditure to the tune of Rs.72.17 crores. The above expenditure, inter-alia, included capital expenditure incurred on purchase of following machineries:- 1. Plasma Nitriding Machine