It was held that the product development expenses, expenditure towards customer trials, validations, feasibility study and eligible development stage expenses will be eligible for a deduction under S. 35 of the Act, the same being within the ambit of scientific research. I was held that expenses pertaining to assembly line are not capital but revenue in nature since they are pertaining to regular business activities of the assessee (AY. 2013-14)
Mahindra Two Wheelers Ltd. v. Dy. CIT (2022) 219 TTJ 136 / 218 DTR 210 / 140 taxmann.com 367 (Mum) (Trib)
S. 35 : Scientific research expenditure-Product development-Eligible deduction-Expenses pertaining to the assembly line-Revenue expenditure. [S. 35(1)(iv) 37(1)]