J.S.NARANG, J. - (1.) THIS judgment would dispose of two IT Appeal Nos. 81 and 82 of 2006, as common questions of law and facts are involved in both these appeals. Facts are being taken from IT Appeal No. 81 of 2006.
(2.) THE instant appeal has been filed by proposing the following questions of law for consideration : (a) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal erred in law in confirming the order of the CIT(A) in holding that the profit of the business eligible for deduction under s. 32AB of the Act would not get reduced on allowing deduction of expenditure on scientific research under s. 35 ? (b) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal erred in law in confirming the order of the CIT(A) in holding that the order was wrongly passed by the AO under s. 154 of the Act as there was no mistake apparent from record ?
(3.) THE assessee had made a claim of Rs. 27,61,348 under s. 35 of the IT Act, 1961 (hereinafter referred to as "the Act"). The total cost of assets on account of scientific research has been given as Rs. 36,57,523. The total costs of land and depreciation thereon have been quantified as Rs. 1,50,350 and Rs. 7,45,825, respectively. The net claim of Rs. 27,61,348 has been made. A reference had been made to the prescribed authority. The report had not been received the assessment was finalised. The deduction under s. 32AB of the Act i.e. 1/5th of the amount so determined had been allowed. was rectified vide the aforesaid order.;