Topic

Scientific Research Deduction

2 articlesLatest July 2026
Section 35(1)(ii) IT Act | Weighted Deduction for Scientific Research Permitted Against Other Heads of Income When Business Income Is Insufficient : ITAT Kolkata
Case Law Analysis
|Income Tax Appellate Tribunal

Section 35(1)(ii) IT Act | Weighted Deduction for Scientific Research Permitted Against Other Heads of Income When Business Income Is Insufficient : ITAT Kolkata

The ITAT Kolkata has ruled that a taxpayer claiming weighted deduction under Section 35(1)(ii) for scientific research may offset the full Rs. 1.57 crore claim against income from other sources if business income is inadequate to absorb the deduction. This clarifies that the deduction is not capped by business profits, significantly benefiting R&D investors with diversified income streams and aligning with the legislative intent to incentivize innovation.

Section 35(1)(ii) Income Tax Act | Retrospective Cancellation of Donee Approval Cannot Void Deductions for Genuine Donations Made During Valid Approval Period : ITAT Kolkata
Case Law Analysis
|Income Tax Appellate Tribunal

Section 35(1)(ii) Income Tax Act | Retrospective Cancellation of Donee Approval Cannot Void Deductions for Genuine Donations Made During Valid Approval Period : ITAT Kolkata

ITAT Kolkata rules that when a donee institution’s approval under Section 35(1)(ii) is cancelled retrospectively, donations made by taxpayers while the approval was active and in good faith remain deductible. This protects legitimate claimants from being penalized for administrative actions taken after the fact, reinforcing legal certainty for corporate philanthropy in scientific research.

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