COMMISSIONER OF INCOME TAX Vs. RAJAPALAYAM MILLS LTD

JUDGEMENT

(1.) (Delivered by DR.VINEET KOTHARI,J) Heard Mr.M.Swaminathan, learned Senior Standing Counsel appearing for the Appellant-Revenue. Despite service of notice, none appears for the Respondent-Assessee.

(2.) The present Appeal has been filed by the Revenue under Section 260-A of the Income Tax Act by raising the following purported substantial questions of law arising from the order passed by the Income Tax Appellate Tribunal dated 31.7.2008, by which the learned Tribunal upheld the order of the learned Commissioner of Income Tax (Appeals) and held that the expenditure incurred by the Assessee on Scientific Research was not entitled to weighted deduction of 1.5 times under Section 35(2AB) of the Act as the Project in question was not duly approved by the Competent Authority, however, the Asssessee, was entitled to normal deduction of 100% of expenditure incurred only under Section 35(1)(i) of the Act.

(3.) The learned Commissioner of Income Tax (Appeals) had discussed the above aspect in his order dated 31.10.2006 as hereunder: -