Dismissing the appeal of the revenue the court held that the Tribunal was right in holding that the expenditure related to the advance given for the research and development equipment was allowable under section 35(1)(iv). Followed CIT v. TVS Motors Ltd. (2014) 364 ITR 1 (Mad.)(HC) (AY. 2004-05)
CIT v. TVS Motors Ltd. (2019) 417 ITR 236 (Mad.)(HC)
S. 35 : Scientific research-Advance paid for research and development equipment is held to be allowable expenditure. [S. 35(1)(iv)]