1991 (1) TMI 32 - HC - Income Tax

Summary

The High Court of Kerala ruled that subsidy received from the Central Government for setting up an industry in a backward area should not be deducted from the cost of assets for tax purposes. The court held that the subsidy is an incentive and not related to the cost of a particular asset. The decision favored the assessee, affirming their entitlement to depreciation, investment allowance, and other deductions without deducting the subsidy amount from the asset's cost.