Scientific research asset sale gains taxed when the asset was not diverted to other purposes and prior deductions apply.

Gain on sale of an asset acquired for scientific research is taxed where the asset was not used for other purposes and the sale proceeds, together with the capital expenditure deduction already allowed, exceed the actual cost to the extent of the deduction claimed. After discontinuance of business, unabsorbed business loss of the year in which business ceased may be set off only against such income, excluding speculation loss and only to the extent of the taxable income. Scientific research includes activity for extension of knowledge and related business or medical research.

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