1991 (11) TMI 27

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..... tax Appellate Tribunal has sent these references under section 256(1) of the Income-tax Act, 1961, along with the statement of cases and the question of law arising out of the order of the Income-tax Appellate Tribunal is as under : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the amount of Central Government subsidy is not deductible fr .....

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..... t in CIT v. Ambica Electrolytic Capacitors Pvt. Ltd. [1991] 191 ITR 494, in which their Lordships have held that the subsidy is a grant for encouraging entrepreneurs to come forward and develop the backward areas and as such cannot be deducted from the cost of the assets of the assessees for denying the benefit of depreciation or investment allowance. Following the said decision, the references a .....

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