Court affirms decision not to deduct Central subsidy from asset cost for depreciation

The High Court of Karnataka upheld the Appellate Tribunal's decision to not deduct the Central subsidy from the cost of assets for depreciation, citing precedent in the case of CIT v. Diamond Dies Manufacturing Corporation Ltd. [1988] 172 ITR 655.

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The High Court of Karnataka, in a reference by the Revenue for the assessment year 1982-83, confirmed the Appellate Tribunal's decision not to deduct the Central subsidy received from the cost of assets for depreciation, based on a previous judgment. (Case: CIT v. Diamond Dies Manufacturing Corporation Ltd. [1988] 172 ITR 655) (1992 (1) TMI 24 - KARNATAKA High Court)

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