https://www.taxtmi.com/caselaws?id=775940 ITAT Mumbai held that professional fees paid for setting up the R&D unit were capital expenditures and not deductible under section 37(1). The amount of INR 14,00,000 was directed to be treated as part of the building cost, allowing depreciation accordingly. However, weighted deduction under section 35(2AB) for travel expenses related to a visit abroad was disallowed due to lack of supporting evidence. The appeal was partly allowed, confirming the disallowance of travel expenses but permitting depreciation on capitalized setup costs. en-us Wed, 04 Jun 2025 00:00:00 +0530 Fri, 01 Aug 2025 16:02:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775940 ITAT Mumbai held that professional fees paid for setting up the R&D unit were capital expenditures and not deductible under section 37(1). The amount of INR 14,00,000 was directed to be treated as part of the building cost, allowing depreciation accordingly. However, weighted deduction under section 35(2AB) for travel expenses related to a visit abroad was disallowed due to lack of supporting evidence. The appeal was partly allowed, confirming the disallowance of travel expenses but permitting depreciation on capitalized setup costs. Case-Laws Income Tax Wed, 04 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775940