https://www.taxtmi.com/caselaws?id=16009 The High Court of BOMBAY ruled in favor of the assessee, holding that the Central subsidy should not be reduced from the total cost of assets for computing the investment allowance. The Court emphasized that the subsidy was intended as an incentive for entrepreneurs and not as a payment to meet the actual cost of assets. Considering the purpose of the subsidy and legal precedents, the Court concluded that the nature of the subsidy, whether revenue or capital, should be determined based on its purpose. Therefore, the Court decided that the Central subsidy cannot be deducted from the total cost of assets for calculating the investment allowance. en-us Wed, 14 Jul 1999 00:00:00 +0530 Mon, 31 Aug 2009 14:52:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16009 The High Court of BOMBAY ruled in favor of the assessee, holding that the Central subsidy should not be reduced from the total cost of assets for computing the investment allowance. The Court emphasized that the subsidy was intended as an incentive for entrepreneurs and not as a payment to meet the actual cost of assets. Considering the purpose of the subsidy and legal precedents, the Court concluded that the nature of the subsidy, whether revenue or capital, should be determined based on its purpose. Therefore, the Court decided that the Central subsidy cannot be deducted from the total cost of assets for calculating the investment allowance. Case-Laws Income Tax Wed, 14 Jul 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16009