2016 (4) TMI 1460 - SCH - Income Tax

Subsidy with respect to Sales Tax payable - Tribunal holding that the subsidy received by the assessee cannot be reduced from written down value for purpose of computing depreciation of wind mills - as per assessee subsidy was not linked to any capital asset and accordingly, the same should not be reduced from the cost of asset for the purpose of granting depreciation - As held by HC 2011 (6) TMI 853 - GUJARAT HIGH COURT Tribunal committed no error as CIT (A) as well as Tribunal both concurrently found that subsidy was not for the purpose of acquisition of the assets but was by way of incentive for encouraging development of alternative source of energy. It had, in fact, come on record that windmills were acquired in the earlier years. The Sales Tax incentive was granted by the State Government during the year in question. It, thus, remains established that the incentive was not given for acquisition of the wind mills but for development of wind farm by way of alternative source of energy - HELD THAT - The special leave petition is dismissed. Application, if any, also stands disposed of. Subsidy received - Tribunal holding that the subsidy received by the assessee cannot be reduced from written down value for purpose of computing depreciation of wind mills - Whether cannot be reduced from written down value for purpose of computing depreciation of wind mills? - as per HC 2011 (8) TMI 1189 - GUJARAT HIGH COURT Tribunal committed no error. CIT (A) as well as Tribunal both concurrently found that subsidy was not for the purpose of acquisition of the assets but was by way of incentive for encouraging development of alternative source of energy. It had, in fact, come on record that windmills were acquired in the earlier years. The Sales Tax incentive was granted by the State Government during the year in question. It, thus, remains established that the incentive was not given for acquisition of the wind mills but for development of wind farm by way of alternative source of energy - HELD THAT - Delay condoned. The special leave petition is dismissed.

Summary

The Supreme Court of India dismissed special leave petitions SLP(C) No. 2300/2012 and SLP(C) No. 12888/2012. Application, if any, also stands disposed of.