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Court : Tribunal
Brief : : Held that it is not mandatory under provisions of section 35(1)(iv) that plant and machinery purchased must be put to use. It is enough that the expenditure is incurred on purchase of plant and machinery to be used in research work. Hence, A.O. is not justified in disallowing deduction to the assessee.
Citation : D.C.I.T. Vs. Metallizing Equipment Co. (P.) Ltd.
Judgment :
Allowabilty of Scientific Research Expenditure
D.C.I.T. Vs. Metallizing Equipment Co. (P.) Ltd. 11/18/2004
IT APPEAL NO. 115, 116 AND 248 (JODH.) OF 1998
Case Fact: Whether A.O. is right in disallowing claim for deduction u/s 35(1)(iv) for capital expenditure on research and development on ground that the assets purchased was not used during the year.
Decision: Held that it is not mandatory under provisions of section 35(1)(iv) that plant and machinery purchased must be put to use. It is enough that the expenditure is incurred on purchase of plant and machinery to be used in research work. Hence, A.O. is not justified in disallowing deduction to the assessee.
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