https://www.taxtmi.com/caselaws?id=22512 The High Court ruled that the Central Government subsidy received by the assessee should not be deducted from the cost of plant and machinery when computing the actual cost for depreciation under section 43(1) of the Income-tax Act, 1961. The subsidy was deemed an incentive for industrial growth in backward areas and not a contribution towards the cost of specific assets. The Court relied on precedents and held that such subsidies should not be deducted for depreciation calculations, ultimately ruling in favor of the assessee against the Revenue. en-us Wed, 12 Sep 1990 00:00:00 +0530 Thu, 10 Dec 2009 17:16:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22512 The High Court ruled that the Central Government subsidy received by the assessee should not be deducted from the cost of plant and machinery when computing the actual cost for depreciation under section 43(1) of the Income-tax Act, 1961. The subsidy was deemed an incentive for industrial growth in backward areas and not a contribution towards the cost of specific assets. The Court relied on precedents and held that such subsidies should not be deducted for depreciation calculations, ultimately ruling in favor of the assessee against the Revenue. Case-Laws Income Tax Wed, 12 Sep 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22512