Expenditure on research is revenue nature if no new product develops, irrespective of treatment in books

Brief of the case

In the case of D.C.I.T. vs Autoline Industries Ltd, Pune Tribunal on the issue whether a particular expenditure is of nature of capital or revenue held that the law on the issue is that the accounting treatment given by the assessee in its books of account is not determinative whether or not the expenditure is allowable as a deduction. In order to be eligible for deduction, it has to be seen whether the expenditure is revenue in nature. The expenditure incurred by the assessee by way of resea

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