Pune ITAT rejects Revenue’s
plea for AY 2009-10 that deduction with respect to Research & Development
(R&D) expenditure u/s 35(2AB) is restricted only to the extent of approval
granted by Department of Industrial and Scientific Research (DSIR) in form
No.3CL; ITAT clarifies that prior to amendment of IT (Tenth Amendment) Rules,
2016, DSIR had no power to quantify expenditure and highlights that issue under
consideration relates to pre-amended provisions; ITAT notes that with
effect from July 1, 2016 form no 3CL was amended and
certification of expenditure was inserted; ITAT rules that once agreement
between the R&D facility and the prescribed authority is executed
under which recognition is given to the facility, role of AO is to look into
and allow the expenditure incurred on in-house R&D facility as weighted
deduction u/s 35(2AB); ITAT thus allows weighted deduction for R&D
facility's entire expenditure u/s 35(2AB) :ITAT
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