Court rules cash subsidy not deductible from machinery cost for depreciation allowance

The HC of Himachal Pradesh held that cash subsidy should not be deducted from the cost of machinery for depreciation allowance, relying on the Income-tax Act, 1961 and precedent. The decision favored the assessee over the Revenue, with no costs awarded.

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The High Court of Himachal Pradesh ruled that cash subsidy received by the assessee should not be deducted from the cost of machinery and plant for depreciation allowance. The decision was based on a previous case and the provisions of the Income-tax Act, 1961. The court answered the question in the affirmative, against the Revenue. No costs were awarded.

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