1991 (1) TMI 14 - HC - Income Tax

Summary

The High Court of Madras, in a tax case reference under section 256(1) of the Income-tax Act, 1961, ruled that the subsidy received by the assessee from SIPCOT should not be deducted in computing the actual cost of capital assets for depreciation and investment allowance. This decision aligns with a previous ruling in Srinivas Industries v. CIT [1991] 188 ITR 22 (Mad). The court's answer to the question was in the affirmative, against the Revenue, with no order as to costs.