Under the Income-tax Act, 2025, an equipment was acquired at a cost of ₹ 10 lakh and put to use in…

Under section 45(1)(a)(i) of the Income-tax Act, 2025, the whole of the capital expenditure (other than on land) incurred on scientific research related to the business of the assessee is allowed as a deduction, so ₹ 10 lakh has already been deducted. Under section 39(4) (Table: Sl. No. 9) (formerly Explanation 1 to s.43(1) of the Income-tax Act, 1961), where an asset is used in the business after it ceases to be used for scientific research related to that business, its actual cost is the actual cost to the assessee as reduced by the deduction allowed under section 45(1)(a). The amount added to the block of assets is therefore ₹ 10 lakh − ₹ 10 lakh = NIL. The original cost would allow the same cost twice, and market value is irrelevant in computing actual cost in this case.