(1.) The Petitioner-Maruti Suzuki India Ltd. is a leading automobile company in India. It has two Research & Development Centres ('R&D Centres'), one at Gurgaon and one at Rohtak, Haryana. The question that arises in this writ petition is - Whether the Petitioner is entitled to deduction under Section 35 (2AB) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') in respect of the expenditure incurred by it for its R&D Centre at Rohtak for the Assessment Year ('AY') 2011-12, AY 2012-13 and AY 2013-14.
(2.) Section 35 (2AB) of the Act reads as under:
(3.) Section 35 (2AB) provides for deduction of a sum equal to two times of the expenditure incurred for scientific research (not being expenditure in the nature of cost of any land or building) on in-house R&D facilities as approved by the Prescribed Authority. The purpose behind this provision is obviously to encourage the establishment of R&D facilities in the country and also to encourage innovation and investment on innovation. Facts in brief Assessment Year 2011 - 12