1988 (8) TMI 51

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..... n 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case, and in view of section 43(1), the Tribunal is justified in holding that the amount of capital subsidy received by the assessee fr .....

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..... sets of the assessee by the amount of capital subsidy received, for the purpose of allowing depreciation as per the provisions of section 43(1) of the Act. Aggrieved by the order passed by the Inspecting Assistant Commissioner, the assessee preferred appeals before the Commissioner of Income-tax (Appeals) who dismissed the appeals. The assessee then filed second appeal before the Tribunal. The Tri .....

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..... nal was right in holding that the amount of capital subsidy in question was not deductible in computing the actual cost of the asset as defined by section 43(1) of the Act for the purpose of calculating the depreciation admissible to the assessee. Consequently, our answer to the question referred to this court by the Tribunal is in the affirmative and against the Revenue. In the circumstances of .....

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