Held that the expenses incurred by the assessee outside India had been incurred not on in-house research and development facility as approved by the prescribed authority, but for availing of services from the research and development facilities of its overseas associated enterprises. Since such facilities were neither of the assessee nor approved by the prescribed authority weighted deduction is not available. Expenditure on capital nature is eligible for deduction under section 35(1)(iv) of the Act. (AY. 2011-12)
Mahle Behr India P. Ltd. and Formerly Known as Mahle India Ltd. v. Dy. CIT (2021) 190 ITD 852 / 92 ITR 726 / 213 TTJ 481/ 206 DTR 262 (Pune) (Trib.)
S. 35 : Scientific research expenditure-Weighted deduction-Not allowable in respect of expenditure incurred outside India-Expenditure of capital nature is eligible for deduction under section 35(1))iv). [S. 35(1)(iv), 35(2AB]