Reassessment order passed for one of the year beyond four years was quashed. On merit the Tribunal held that designing and development expenses is held to be capital expenditure and directed to allow the depreciation. R&D expenditure is disallowed for failure to produce evidence and directed the AO to allow depreciation. (AY. 2005-06, 2008-09 to 2015-16)
Tata Advanced Materials Ltd. v. DCIT / (2021) 209 TTJ 242 / 197 DTR 97 (Bang.)(Trib.)
S. 37(1) : Business expenditure-Designing and development expenses-Capital or revenue-Held to be capital expenditure-Directed to allow the depreciation-R&D expenditure-Failure to produce evidence not allowed-Directed the AO to allow depreciation-Reassessment order passed beyond four years-Order was quashed. [S. 32, 35(1)(iv), 147, 148]