Case Law Analysis
|Income Tax Appellate Tribunal
Section 35(1)(iv) IT Act | Capital Expenditure on R&D Deductible Only After Business Commencement : ITAT Pune
ITAT Pune holds that deductions under Section 35(1)(iv) of the Income Tax Act for capital expenditure on scientific research are allowable only after the assessee's business has commenced. The ruling clarifies that pre-commencement R&D expenses, even if substantial, do not qualify for tax relief, impacting biotech and pharmaceutical startups.