Assessee contended that deduction under section 35(1)(ii) be allowed on scientific research in respect of contribution to Institute of Road Transport. AO denied the deduction. High Court observed that assessee had not claimed weighted deduction under S.35(1)(ii) of the Act and although the provisions had been referred in the assessment order entire expenditure deserved to be allowed under S. 37(1) of the Act. Thus, High Court held that both lower authorities had correctly allowed deduction under S. 37(1) of the Act. (TC A No. 283, 284 of 2006 dt. 21-03-2019) (AY. 1991-92, 1992-93)
CIT v. The Tamil Nadu State Transport Corporation (Madurai) Ltd (2019) 179 DTR 161 / 104 CCH 608 (Mad.)(HC)
S. 37(1) : Business expenditure-Scientific Research–No weighted deduction claimed of actual expenses–Deduction allowable as business expenditure. [S. 35(1)(ii)]