TaxTMI 
TaxTMI 
2003 (12) TMI 10
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....y carrying on business in the manufacture and sale of flavours, essence, etc. For the assessment year 1989-90, the company filed a return, in which, a claim of deduction under sections 80HH, and 80-I of the Income-tax Act, 1961, was made. In the assessment made, the Assessing Officer allocated a sum of Rs. 54,92,889 as expenditure on research and development pertaining to Chittoor unit. The assess....
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....llowed in computing the total income of the assessee a deduction from such profits and gains of an amount equal to 20 per cent, thereof. The assessee claims benefits under the above provisions after excluding the expenses on research and development carried out by it at its establishment at Madras. The Assessing Officer allocated a sum of Rs. 54,92,889 as expenses for the benefit of the Chittoor u....
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....t. A careful perusal of the order of the Tribunal would show that the Tribunal has not addressed itself to this aspect of the matter. Instead, there was a presumption made that any technology about new flavours and essence will automatically be utilized in Chittoor unit also without examining as to whether the research and development actually carried out at Madras was of use for the unit at Chitt....