Discuss the deductibility or otherwise of the following expenditure incurred by Sumit Agro Industries, while computing its business income for the year ended 31.03.2017. Land & Building acquired for scientific resear

As per section 35(1)(iv) read with section 35(2), if any capital expenditure (other than expenditure on acquisition of land) is incurred on scientific research related to the business carried on by the assessee, the whole of such capital expenditure is allowable as deduction in the previous year in which it is incurred. Therefore, ₹13,00,000 (i.e. ₹22,50,000 - ₹9,50,000 being the cost of land) is allowable as deduction for the AY 2017-18.