https://www.taxtmi.com/caselaws?id=12409 A statutory contribution paid out of profits under the Gujarat Co-operative Societies Act was treated as allowable business expenditure and deductible in computing total income. Depreciation on plant and machinery funded by a 30 percent grant was allowed on the full actual cost because the grant did not directly or indirectly meet the cost of the asset for section 43(1) purposes. The same grant amount, however, was excluded from capital employed for relief under section 80J, as grant assistance does not form part of that computation. The assessee succeeded on the deduction and depreciation questions, while the Revenue succeeded on the section 80J issue. en-us Fri, 24 Dec 1999 00:00:00 +0530 Wed, 24 Feb 2010 11:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12409 A statutory contribution paid out of profits under the Gujarat Co-operative Societies Act was treated as allowable business expenditure and deductible in computing total income. Depreciation on plant and machinery funded by a 30 percent grant was allowed on the full actual cost because the grant did not directly or indirectly meet the cost of the asset for section 43(1) purposes. The same grant amount, however, was excluded from capital employed for relief under section 80J, as grant assistance does not form part of that computation. The assessee succeeded on the deduction and depreciation questions, while the Revenue succeeded on the section 80J issue. Case-Laws Income Tax Fri, 24 Dec 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12409