Held that section 35(2AB) is amended on April 1, 2016 whereby the quantum of eligible expenditure incurred on in-house research and development facility is required to be quantified by the prescribed authority. Prior to April 1, 2016, there was no such requirement for claiming the deduction. Merely because the Department of Scientific and Industrial Research had quantified such expenditure in the current year, which was prior to April 1, 2016. Disallowance is deleted. The AO is directed to allow at 200 per cent. of the actual expenditure incurred on scientific research in its in-house research and development facility. (AY. 2013-14, 2017-18)
Pharmanza Herbal P. Ltd. v Dy. CIT (2024)115 ITR 612 / 164 taxmann.com 1297 (Ahd)(Trib)
S. 35 : Expenditure on scientific research-Department of Scientific and Industrial research approved only part of expenditure claimed-Prior to 1-4-2016 there is no requirement of quantification of eligible expenditure incurred on in-house research and development facility has to be approved by prescribed authority-Entitled to 200 Per Cent. of actual expenditure incurred on Scientific Research.[S.35(2AB]