Case Law Analysis
|Income Tax Appellate Tribunal
Section 37(1) IT Act | R&D Expenditure Disallowed Under Section 35(2AB) Still Allowable as Business Expense If Genuine : ITAT Delhi
ITAT Delhi rules that R&D expenditure rejected under Section 35(2AB) for lack of certification can still be claimed as a business expense under Section 37(1) if its genuineness is established. This holding preserves tax relief for businesses incurring legitimate R&D costs even when formal compliance fails.