2001 (12) TMI 44

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....ssessee is a company and the assessment year in question is 1985-86. In the course of assessment proceedings, the assessee claimed deduction under section 35(1)(iv) of the Income-tax Act, 1961, in a sum of Rs.4,92,467 under the head "Research and development expenses". The Assessing Officer negatived the assessee's claim on the ground that the said expenditure related to a building that was sti....

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.... allowed. Section 35(2)(ia) provides that in a case where such capital expenditure is incurred after March 31, 1967, the whole of such capital expenditure incurred in any previous year shall be deducted for that previous year. The section refers only to "capital expenditure" and does not further require that the asset brought into existence by incurring such expenditure should have been complete i....