Sec 35(1)(ii)

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Puneet Goyal (Querist)
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28 May 2014 can you give any legal reference where it is mentioned that Sec 35(1)(ii) deduction is available to assessee carrying business or profession

CA Nilesh P. Kanodia

CA Nilesh P. Kanodia (Expert)
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28 May 2014 Dear Mr. Puneet,

As per sec. 35(1)(ii) of Income tax scientific capital expenditure is allowed as deduction @ 175% of amount of expenditure subject to donation is made to approved institute or organization for research and development, whether related to business or not.

Deduction will be allow in year of donation and up to the availability of profitability or remaining amount will be allowed in subsequent year and so on.

this below case may help you:
1) SHRIRAM SCIENTIFIC & INDUSTRIAL RESEARCH FOUNDATION V/s CENTRAL BOARD OF DIRECT TAXES - Decision by Delhi High Court

2) DHARA VEGETABLE OIL & FOODS CO LTD V/s DEPUTY COMMISSIONER OF INCOME TAX - Decision by Guajarat High Court