Summary
- The Gujarat High Court has ruled that deductions under Section 35(2AB) cannot be denied simply because the approval for R&D facilities was granted in a subsequent year.
- This decision arose from the case of Principal Commissioner of Income Tax (Central) Vs Cadila Healthcare Limited concerning Assessment Year 2013-14.
- The Court emphasized that once recognition is granted by the Department of Scientific and Industrial Research (DSIR), the deduction is applicable for expenditures incurred prior to approval.
- This ruling could significantly impact how companies claim deductions for research and development expenses moving forward.
Join the discussion — sign up to comment, upvote, and save articles.