Ind AS Cannot Override Tax Computation Under ICDS

In cross-appeals concerning AY 2019-20, ITAT Mumbai examined several adjustments arising from differences between Ind AS and tax computation under the Act and ICDS.

It deleted additions relating to notional security-deposit income, upfront royalty already taxed in an earlier year, EPCG benefits and borrowing-cost adjustments under ICDS IX. 

On the TDR transaction, it remanded the issue for verification of the cost of acquisition and earlier-year treatment. It also held that the assessee could not be denied weighted deduction under Section 35(2AB) merely because the prescribed authority had not issued Form 3CL, where the R&D facility had the requisite Form 3CM approval.