Omni Active Health Technologies Ltd. v. ACIT (2020) 184 ITD 714 (Mum.)(Trib.)

S. 35 : Scientific research-Facility is recognised by prescribed authority, in-house R & D-role of-Assessing Officer is to allow expenditure incurred on in-house R&D facility as weighted deduction-in computing 90 days limitation period as provided under Rule 34(5) for pronouncing order, period of Covid-19 pandemic lockdown was to be excluded. [S.35(2AB, S.255]

Assessee claimed deduction under section 35(2AB) being 200% of amount incurred towards scientific research.  Assessing Officer from perusal of approvals from DSIR in Form No.3CM and working of deduction under section 35(2AB) in return of income and Form No. 3CL, found difference of Rs.10.54 lacs  same was disallowed and added to income of assessee.  Tribunal held that once such an agreement has been executed, under which recognition has been given to facility, then role of Assessing Officer is to look into and allow expenditure incurred on in-house R&D facility as weighted deduction under section 35(2AB)  of the Act.  Tribunal also held that in computing 90 days limitation period as provided under Rule 34(5) for pronouncing order, period of Covid-19 pandemic lockdown was to be excluded. (AY. 2014-15)