TMI Blog1982 (2) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... concerning his order upholding the rejection of the allowance under section 35 of the Income-tax Act, 1961 ('the Act') in respect of laboratory equipment worth Rs. 94,687 and a building worth Rs. 1,18,452. The facts of the case are that during the year under consideration, the assessee spent the following amounts on scientific research: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 3,08,175 he was satisfied that the laboratory equipment was actually used during the year on scientific research. He, therefore, allowed the assessee's claim under section 35. In respect of the balance of the expenditure, he rejected the assessee's claim solely on the ground that the relevant assets were not put to actual use on scientific research. He, therefore, rejected the assessee's claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edients for allowance under this section are present in the instant case, viz., that the expenditure has been incurred during the year that was of a capital nature and that it was related to the scientific research carried on by the assessee. It was a different matter that these assets purchased by the expenditure were not put to actual use during the year. But the lower authorities have not dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 35. Now the question is in respect of the rest of the expenditure amounting to Rs. 94,687 on the laboratory equipment and Rs. 1,18,452 in respect of the building. The lower authorities have not denied the assessee's claim that this expenditure was meant for scientific research and that it was of a capital nature. We agree with the learned counsel for the assessee that all the three ingredie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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