Capital expenditure on scientific research has to be in connection with the Assessee’s business to be allowable under section 35 of IT

RELEVANT PARAGRAPH 9. The plain reading of the above clause (iv) of 35(1) reveals that the deduction shall be admissible u/s 35(2) when any expenditure is capital in nature; Such capital expenditure is incurred on the scientific research; that scientific research must be related to the business; and that business must have been carried on by the assessee. Further, said clause presumes that there exist two distinct activities with the assessee such as (a) business carried on by the assessee; and (b) conducting scientific research related to the said business. Both these activities must relate t...