The PCIT passed an order u\/s 263 of the Act wherein he set aside the set aside assessment order framed by the AO u\/s.143(3) of the Act, stating that the assessee was engaged in the production of cosmetic products, which is one of the articles listed in Eleventh Schedule to which deduction u\/s.35(2AB) of the Act does not apply and therefore, the AO has erroneously allowed claim of deduction to the assessee u\/s.35(2AB) of the Act, in contravention of said section without carrying out any verification or enquiry.<\/p>\n
The ITAT observed that the AO had gone through the various documents furnished and also the approval received by the assessee from the DSIR for claiming deduction u\/s 35(2AB) of the Act during the scrutiny proceedings and after examining the same allowed the claim of deduction u\/s 35(2AB) of the Act. Insofar as the question as to whether the AO has any power to question the approval granted by DSIR u\/s 35(2AB) of the Act, the ITAT held that the decision of DSIR is final as per sub-rule 5A of Rule 6 of the IT Rules, 1962. Therefore, the revision order was set aside. \u00a0(AY. 2011-12)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 263 : Commissioner-Revision of orders prejudicial to revenue-AO allowed deduction u\/s 35(2AB) after verifying all the necessary documents and certificates-Neither the AO nor the PCIT has power to question the approval granted by the DSIR. [S. 35(2AB), 143(3)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43790","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-boi","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=43790"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43790\/revisions"}],"predecessor-version":[{"id":45111,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43790\/revisions\/45111"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=43790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=43790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=43790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}