1987 (4) TMI 131 - AT - Income Tax

Summary

The appeal involved the deduction of subsidy from the cost of plant and machinery for depreciation purposes. The Tribunal upheld that the subsidy is not a contribution towards a specific asset, and depreciation should be allowed based on the gross cost without deducting the subsidy amount. The decision was influenced by a previous ruling and the Andhra Pradesh High Court case, ultimately favoring the assessee and dismissing the departmental appeal.