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deduction on scientific research

CA Mohit Agrawal (Chartered Accountant) (371 Points)

06 March 2010

if Capital asset is purchased for scientific research and it is purchased on hire purchase than can the whole amount can be claimed as deduction

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3 Replies

CA.Dheenadayalan.R (Chartered Accountant) (156 Points)
Replied 06 March 2010

In inome tax act there s no specific provisn for method of purchase of capital asset. hence deduction can be availed.

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Amir (Learner) (4016 Points)
Replied 06 March 2010

Dear Mohit,

Bhai just see following cases - most of ur issues will get resolved..............

Ratios can be applied to SR Assets as well

Vehicles taken under hire-purchase agreement - Depreciation is to be allowed to the user in the case of a hire-purchase agreement - CIT v. Nagpur Golden Transport Co. [1998] 233 ITR 389 (Delhi).

Trucks bought on instalment basis are eligible - A transporter is entitled to depreciation on trucks bought on instalment basis even though they are not registered in his name - CIT v. Mirza Ataullaha Baig [1994] 76 Taxman 495/[1993] 202 ITR 291 (Bom.).