1998 (4) TMI 15 - HC - Income Tax

New Industrial Undertaking In Backward Area, Special Deduction, Depreciation, Investment Allowance, Actual Cost, New Industrial Undertaking

Summary

The High Court of Madras ruled on two questions of law under the Income-tax Act, 1961.

1. The court held that losses should be set off against profits before granting deduction under section 80HH. Answered in favor of the Revenue.

2. The court ruled that subsidy received should not be reduced from the actual cost of assets for depreciation purposes. Answered against the Revenue based on a Supreme Court decision.