High Court rules subsidy can't reduce plant/machinery cost for tax calculations

The High Court of Madras held that the cost of plant and machinery could not be reduced by the subsidy received by the assessee-company for depreciation and investment allowance calculations, ruling in favor of the assessee-company.

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The High Court of Madras delivered a judgment on a tax case reference under the Income-tax Act, 1961. The court held that the cost of plant and machinery could not be reduced by the subsidy received by the assessee-company for computing depreciation and investment allowance. The decision was based on a previous case and ruled in favor of the assessee-company. No costs were awarded.

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