https://www.taxtmi.com/caselaws?id=70327 Guarantee commission paid to a bank for a standing guarantee supporting deferred payment purchase of machinery was treated as revenue expenditure, as it did not create a capital asset or enduring advantage. Central subsidy received under an industrial incentive scheme for backward-area development was held not to reduce the actual cost of capital assets under section 43(1) because it was not an outright grant linked to the purchase price of specific assets. Depreciation therefore had to be computed on the full cost, and the departmental appeal failed on both issues. en-us Tue, 31 Jul 1984 00:00:00 +0530 Fri, 15 Apr 2011 15:23:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70327 Guarantee commission paid to a bank for a standing guarantee supporting deferred payment purchase of machinery was treated as revenue expenditure, as it did not create a capital asset or enduring advantage. Central subsidy received under an industrial incentive scheme for backward-area development was held not to reduce the actual cost of capital assets under section 43(1) because it was not an outright grant linked to the purchase price of specific assets. Depreciation therefore had to be computed on the full cost, and the departmental appeal failed on both issues. Case-Laws Income Tax Tue, 31 Jul 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70327