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2014 (1) TMI 1306 - AT - Income TaxAllowability of expenditure u/s 35(1)(iv) of the Act – Expenditure on scientific research – nature of expenses – Capital expenses u/s 35(1)(i) or Revenue expenses u/s 37(1) of the Act – Held that:- The expenditure being admittedly on scientific research, there is no basis for not allowing the claim u/s. 35(1), only whereupon, i.e., on a finding of it not falling or being covered u/s. 35, could the scope of the same falling u/s.37(1) be considered - the assessee stands allowed deduction of the expenditure for that year u/s. 37(1) – thus, The AO is directed to allow the assessee's claim in respect of the scientific expenditure incurred on research expenses for the current year/s u/s 35(1)(iv) of the act - the assessee having itself considered it as capital expenditure – thus, no amount would survive for being carried over as the WDV of the relevant 'block of assets' u/s. 43(6) - the assessee having already secured full deduction for the immediately preceding year/s – Decided in favour of Assessee.
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