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2010 (2) TMI 761 - AT - Income TaxExpenditure on Scientific Research - ad hoc disallowance of conveyance expenses and telephone and postage expenses and local and foreign travel expenses - disallowance out of professional fees and contract payments u/s 40(a)(ia) - disallowance of product development, laboratory expenses, quality control expenditure, etc as expenditure on scientific research and capital expenditure.- held that : - When the assessee furnished complete details, ad hoc disallowance cannot be made. - Decided in the favour of Assessee. - TDS made in the last month of the accounting year and if the same is paid before filing of the return under section 139(1) of the Act, no disallowance is warranted. Decided in the favour of Assessee. - The object behind the enactment of section 35 of the Act is to encourage research and development activities by the assessee. The Legislature has given benefit of deduction in respect of the capital expenditure also. - Decided in favour of Assessee
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