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2005 (2) TMI 57 - HC - Income TaxAllowance of the expenditure incurred on scientific research - "Whether Tribunal was, in law, justified in allowing the relief on account of depreciation on capital expenditure on the cost of machinery and plant used for carrying out research and development?" - expenditure on scientific research under section 35 is allowable when such expenditure is laid out or expended or related to the business - It is not in dispute that the respondent/assessee had derived income from consultancy services, preparation of feasibility report and other connected activities. Thus it had carried on business during the assessment year in question and was entitled for allowance of the expenditure incurred on scientific research which was related to its business – Question is answered in the affirmative, i.e., in favour of the assessee
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