Criteria for approval in Form No. 3CL by DSIR

This judgement concerns an income tax appeal where the Revenue sought to condone a 21-day delay in filing. The Tribunal condoned the delay. The core issue revolved around the criteria for approval under Form No. 3CL, related to expenditure on scientific research under Section 35(2AB) of the Income Tax Act. The prescribed authority for this approval is the Secretary of the Department of Scientific and Industrial Research (DSIR). The appeal was ultimately dismissed.

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, PUNE
(Through Virtual Court)
BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER
AND
SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER

ITA No. 305/PUN/2021

Assessment Year : 2014-15

The Deputy Commissioner of Income Tax,
Circle-8, Pune.

vs

M/s. Force Motors Limited
Mumbai Pune Road, Akurdi,
Pune-411 035
PAN : AAACB7066L

Revenue by : Shri A M Mahadevan Krishnan
Assessee by : Shri Kishor B Phadke

Date of Hearing : 02.09.2021

Date of Pronouncement : 03.09.2021

ORDER

In this case, there is a delay of 21 days in filing of the appeal before the Tribunal. The Ld. DR for the Revenue has filed a letter dated 16.06.2021 for condonation of the delay of 21 days stating that the Hon‟ble Supreme Court of India, in Civil Original Jurisdiction, Suo Moto Writ Petition (Civil) No.3 of 2020 dated 27.04.2021 extended period of limitation till further order. The Ld. Counsel for the assessee did not raise any objection. After hearing the parties herein, we condone the delay and proceed to hear this appeal on merits.

2. The Ld. Counsel for the assessee submitted that the issue raised in the present appeal is squarely covered by the decision of the Pune Bench of the Tribunal in the case of Cummins India Limited Vs. DCIT, ITA No.309/PUN/2014 for the assessment year 2009-10 dated 15.05.2018 wherein the Tribunal has decided this issue in favour of the assessee.

3. Under Rule 6 of Income Tax Rules, 1962 (in short 'the Rules), the prescribed authority for expenditure on scientific research under various sub- clauses has been identified. As per Rule 6(1B) of the Rules for the purpose of sub-section 2AB of section 35 of the Act, the prescribed authority shall be the Secretary, Department of Scientific and Industrial Research i.e. DSIR. Under sub-rule (4), application for obtaining approval under section 35(2AB) of the Act is to be made in form No.3CK.

4. In the result, appeal of the Revenue is dismissed.
Order pronounced on 03rd day of September, 2021.

Please find attached the enclosed file for the full judgement