Held by High Court that, though the contribution made to the Institute of Road Transport was paid after the end of the financial year, since the liability was incurred during the financial year relevant to 1992-93, the same is allowable under S. 37(1) on the basis of mercantile system and there was no question of disallowance by invoking S. 35(1)(ii) since no weighted deduction was claimed by assessee. (AY. 1991-1992, 1992-93)
CIT. v. Tamilnadu State Transport Corporation (Madurai) Ltd. (2019) 179 DTR 161 (Mad)(HC)
S. 37(1) : Business expenditure-Scientific research-The direction of the State Government for payment of contribution came just before the end of the financial year, entire expenditure is allowable on accrual basis-Claim cannot be disallowed under S. 35(1)(ii) as assessee did not claim weighted deduction. [S. 35(1) (ii)]