Expenditure claimed as revenue in nature is allowable U/s. 37(1) not U/s. 35AB of the Income Tax Act, 1961

RELEVANT PARAGRAPH

25.9 In the light of the above discussion, if we consider the facts of the case under consideration, we find that the expenditures were incurred though on technical know-how but in respect of improving the performance of existing product i.e. utility vehicles. It is not the case of the revenue that these expenditures are capital in nature. Payments were intimately linked up with the manufacturing activities of the assessee and not with the cap

Please become a Premium member. If you are already a Premium member, login here to access the full content.