Capital Subsidy Cannot Adjust Cost of Acquisition for Tax - Delhi HC Decision

The Delhi HC held that the capital subsidy received by the assessee cannot be adjusted for determining the cost of acquisition of building and machinery for tax purposes, following the precedent set by the SC in CIT v. P.J. Chemicals Ltd. (1994).

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The Delhi High Court ruled in favor of the assessee, stating that the capital subsidy received cannot be adjusted for determining the cost of acquisition of building and machinery for tax purposes. The decision was based on a previous Supreme Court ruling in CIT v. P.J. Chemicals Ltd. (1994).

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