Income Tax Act, 2025
Section 10: Ins. by Act 44 of 1980, s. 7 (w.e.f. 11980).
10. Ins. by Act 44 of 1980, s. 7 (w.e.f. 11980).
11. Subs. by Act 21 of 1984, s. 6, for “Where an assessee has incurred any expenditure” (w.e.f. 11984).
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behalf by the prescribed authority having regard to the social, economic and industrial needs of India, he
shall, subject to the provisions of this sub-section, be allowed a deduction of a sum equal to one and
one-fourth times the amount of the expenditure certified by the prescribed authority to have been so
incurred during the previous year.
(b) Where a deduction has been allowed under clause (a) for any previous year in respect of any
expenditure, no deduction in respect of such expenditure shall be allowed under clause (i) of
sub-section (1) or clause (ia) of sub-section (2) for the same or any other previous year.
(c) Where a deduction is allowed for any previous year under this sub-section in respect of
expenditure represented wholly or partly by an asset, no deduction shall be allowed in respect of that asset
under 1[clause (ii) of sub-section (1)] of section 32 for the same or any subsequent previous year.
(d) Any deduction made under this sub-section in respect of any expenditure on scientific research in
excess of the expenditure actually incurred shall be deemed to have been wrongly made for the purposes
of this Act if the assessee fails to furnish within one year of the period allowed by the prescribed authority
for completion of the programme, a certificate of its completion obtained from that authority, and the
provisions of sub-section (5B) of section 155 shall apply accordingly.]
2[(3) If any question arises under this section as to whether, and if so, to what extent, any activity
constitutes or constituted, or any asset is or was being used for, scientific research, the Board shall refer
the question to—
(a) the Central Government, when such question relates to any activity under clauses (ii) and (iii)
of sub-section (1), and its decision shall be final;
(b) the prescribed authority, when such question relates to any activity other than the activity
specified in clause (a), whose decision shall be final.]
(4) The provisions of sub-section (2) of section 32shall apply in relation to deductions allowable
under clause (iv) of sub-section (1) as they apply in relation to deductions allowable in respect of
depreciation.
3[(5) Where, in a scheme of amalgamation, the amalgamating company sells or otherwise transfers to
the amalgamated company (being an Indian company) any asset representing expenditure of a capital
nature on scientific research,—
(i) the amalgamating company shall not be allowed the deduction under clause (ii) or clause (iii)
of sub-section (2); and
(ii) the provisions of this section shall, as far as may be, apply to the amalgamated company as
they would have applied to the amalgamating company if the latter had not so sold or otherwise
transferred the asset.]
1. Subs. by Act 46 of 1986, s. 32, for “clauses (i), (ii), (iia) and (iii) of sub-section (1) or under sub-section (1A)”
(w.e.f. 11988).
Where a deduction has been allowed under clause
for any previous year in respect of any
expenditure, no deduction in respect of such expenditure shall be allowed under clause
of
sub-section
or clause
of sub-section
for the same or any other previous year.
Where a deduction is allowed for any previous year under this sub-section in respect of
expenditure represented wholly or partly by an asset, no deduction shall be allowed in respect of that asset
under 1[clause
of sub-section
Any deduction made under this sub-section in respect of any expenditure on scientific research in
excess of the expenditure actually incurred shall be deemed to have been wrongly made for the purposes
of this Act if the assessee fails to furnish within one year of the period allowed by the prescribed authority
for completion of the programme, a certificate of its completion obtained from that authority, and the
provisions of sub-section
of section 155 shall apply accordingly.]
2[
If any question arises under this section as to whether, and if so, to what extent, any activity
constitutes or constituted, or any asset is or was being used for, scientific research, the Board shall refer
the question to—
the Central Government, when such question relates to any activity under clauses
and
of sub-section
the prescribed authority, when such question relates to any activity other than the activity
specified in clause
The provisions of sub-section
of section 32shall apply in relation to deductions allowable
under clause
of sub-section
as they apply in relation to deductions allowable in respect of
depreciation.
3[
Where, in a scheme of amalgamation, the amalgamating company sells or otherwise transfers to
the amalgamated company (being an Indian company) any asset representing expenditure of a capital
nature on scientific research,—
the amalgamating company shall not be allowed the deduction under clause
or clause
of sub-section
the provisions of this section shall, as far as may be, apply to the amalgamated company as
they would have applied to the amalgamating company if the latter had not so sold or otherwise
transferred the asset.]
1. Subs. by Act 46 of 1986, s. 32, for “clauses
and
of sub-section
or under sub-section