9911796707
TMI Blog2007 (9) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... not be reduced by the amount of subsidy received by the assessee from the Government for the purpose of working out depreciation u/s 32 read with section 43(1) of the Income-tax Act, 1961 - 10 of 1995 with 2, 9, 11, 13, 14, 16, 17, 18 & 20 - - - Dated:- 11-9-2007 - DEEPAK GUPTA and V. K. AHUJA JJ. JUDGMENT The judgment of the court was delivered by DEEPAK GUPTA J.—1. By this common ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... others Rice Mills [1989] 179 ITR 470, had accepted the plea of the Revenue and had taken the view that the cost of assets must be reduced by the amount of subsidy for the purpose of working out the depreciation. On the other hand, the majority of the High Courts in the country had taken a contrary view which was in favour of the assessee. The learned Tribunal basically referred this matter becau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal. The apex court held as follows ( headnote of AIR 1994 SC 2727): "The expression 'actual cost' needs to be interpreted liberally. The subsidy of the nature granted by Government to industries, does not partake of the incidents which attract the conditions for their deductibility from 'actual cost'. Government subsidy, it is not unreasonable to say, is an incentive not for the sp ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
