https://www.taxtmi.com/caselaws?id=257297 The Tribunal dismissed the Revenue's appeal and upheld the CIT(A)'s decision, ruling that the R&D expenses incurred by the assessee were revenue in nature and eligible for deduction under section 35(1)(i). The Tribunal found the expenses related to developing prototypes for specific customers were necessary for conforming to customer specifications and securing regular business orders, not for setting up a new business. All items of R&D expenses were deemed revenue expenditures, including custom duty, consultancy charges, material cost, and direct labor cost, supporting their deduction as per the law. en-us Fri, 10 Oct 2014 00:00:00 +0530 Mon, 09 Mar 2015 09:18:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=257297 The Tribunal dismissed the Revenue's appeal and upheld the CIT(A)'s decision, ruling that the R&D expenses incurred by the assessee were revenue in nature and eligible for deduction under section 35(1)(i). The Tribunal found the expenses related to developing prototypes for specific customers were necessary for conforming to customer specifications and securing regular business orders, not for setting up a new business. All items of R&D expenses were deemed revenue expenditures, including custom duty, consultancy charges, material cost, and direct labor cost, supporting their deduction as per the law. Case-Laws Income Tax Fri, 10 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=257297