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TMI Blog2004 (8) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... ted under the scheme to quantify the financial aid, is not a payment, directly or indirectly, to meet any portion of the 'actual cost' - Thus amount of subsidy is not to be deducted from the 'actual cost' under section 43(1) for the purpose of calculation of depreciation - - - - - Dated:- 5-8-2004 - Judge(s) : R. K. AGARWAL., K. N. OJHA. JUDGMENT The Income-tax Appellate Tribunal, Allahabad has referred the following question of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the opinion to this court: "Whether on the facts and in the circumstances of the case, the Tribunal was legally correct in upholding the Appellate Assistant Commissioner's order directing the Income-tax Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount of subsidy receivable from the U. P. Financial Corporation. The respondent-assessee appealed to the Tribunal who vide order dated December 26, 1980 cancelled the order of the Commissioner of Income-tax that he had no jurisdiction to revise the order of the Income-tax Officer as the same had merged in the order of the Appellate Assistant Commissioner, dated December 5, 1979. The Department filed a reference application under section 256(1) of the Act against the said order dated December 26, 1980, which was referred to this court on June 7, 1984. Meanwhile the Income-tax Officer revised the assessment for the assessment years 1976-77, 1977-78 and 1978-79 and determined the cost of the generator by reducing it by the amount of subsid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ------------------------------ The respondent-assessee filed an appeal before the Appellate Assistant Commissioner who vide his order dated December 31, 1982, held that no subsidy was received in the accounting year relevant for this year. Since the order dated January 2,1980, passed by the Commissioner of Income-tax was cancelled by the Tribunal, the Appellate Assistant Commissioner directed the Income-tax Officer to work out depreciation for the year by adopting the W.D.V. as per the assessment order for the assessment year 1977-78, dated June 3, 1978. Departmental appeal against the said order was dismissed by the Tribunal on March 31, 1984 with the following observations: "In our opinion, the order passed by the Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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