Case Law Details
Aban Infrastructure Ltd. Vs DCIT (ITAT Chennai)
ITAT Chennai held that expenditure of Bio-technology Research & Development cannot be disallowed simply on the allegation that expenditure was incurred before the commencement of a new line of business as such matching concept not application in the present case.
Facts-
The assessee has preferred the present appeal on the only ground urging disallowance of expenditure of Rs. 169.60 Lakhs on Bio-technology Research & Development during the relevant year. Assessee alleged that revenue has no right to disallow the expenditure without making a reference to the approving authority.
On the other hand, revenue contended that the expenditure was incurred before the commencement of a new line of business and therefore, the expenses has rightly been disallowed.
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