9911796707
TMI Blog2001 (11) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses towards scientific research claimed to be exempt under s. 35(2)(ia). The assessee has claimed Rs. 41,95,434 under s. 35(2)(ia) of the Act. This claim was in respect of Central Research Development Laboratory, Dewari branch. The assessee received a total sum of Rs. 101.20 lakhs from the Department of Science and Technology, Ministry of Development, Government of India, New Delhi, for sett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has been reimbursed by the Government of India, Department of Science and Technology. He has relied upon the order of AO. 3. The learned authorised representative submitted that the assessee had received a grant of Rs. 60,00,000 from the Department of Science Technology, Government of India for the said laboratory. The AO has not allowed the deduction on the ground that the assessee has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has set up research laboratory at the Indian Telephone Industries, Bangalore, regarding thick thin film hybrid microcircuits. It is also admitted that the research laboratory is in connection with the business of the assessee. Therefore, the conditions stated in s. 35(1)(iv) are satisfied and the deduction is permissible." "Apparently there does not appear to be anything in the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the grant-in-aid is received it merges with the funds of the assessee. Thereafter, disbursements are made. It is not the case of the Revenue that the Government has directly paid for some capital equipment on behalf of the assessee. In such a case, there would be some difference in our appreciation of the problem. Obviously, the expenditure has been incurred by the assessee out of a grant receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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