| Case ID |
f5529a3e-a083-47c2-8804-c24f1ddbbed9 |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The Delhi High Court affirmed the decision of the Tribunal, which had allowed the deduction under section 35 of the Income-tax Act for the machinery purchased by the assessee for research and development purposes. The Court stated that the finding recorded by the Tribunal was a pure finding of fact and did not give rise to any question of law. The machinery in question was found to be used for research and development, thereby justifying the deduction. The decision was made in favor of the assessee, confirming that the Tribunal's ruling was correct based on the facts presented. |
| Summary |
This case revolves around the interpretation of section 35 of the Income-tax Act, 1961, which pertains to deductions for scientific research expenditures. The Tribunal had granted a deduction to Electronics Consortium P. Ltd. for machinery it purchased, asserting that it was utilized for research and development. The Delhi High Court upheld this finding, emphasizing that the determination was purely factual, and thus, no legal question arose from it. The case highlights the importance of substantiating claims for tax deductions based on factual usage of purchased assets, particularly in the context of research. This ruling serves as a precedent for similar cases where the intent and usage of equipment for research purposes are in question. Keywords such as 'Income-tax Act', 'scientific research deduction', and 'Delhi High Court' are pivotal in tax law discussions and are trending in legal circles, making this case significant for practitioners and scholars alike. |
| Court |
Delhi High Court
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| Entities Involved |
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| Judges |
B.N. KIRPAL,
C.L. CHAUDHRY
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| Lawyers |
B. Gupta,
R.K. Chaufla,
P.N. Monga
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
Electronics Consortium P. Ltd.
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| Citations |
1990 SLD 2063,
(1990) 185 ITR 572
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| Other Citations |
Not available
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
35(1),
35(2)
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