https://www.taxtmi.com/caselaws?id=22832 The court ruled that the subsidy received by the assessee was not to be deducted from the cost of machinery for depreciation under section 43(1) of the Income-tax Act, 1961. The subsidy was considered a financial incentive, not specifically intended to offset machinery costs. The court found the subsidy was not an outright grant to reduce machinery costs, but an incentive for industrial growth in backward areas. The timing of subsidy receipt did not impact its nature, and it was not tied to the cost of individual components like machinery. The court's decision was against the Revenue, with no costs awarded in the tax cases. en-us Fri, 18 Jan 1991 00:00:00 +0530 Mon, 14 Dec 2009 13:50:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22832 The court ruled that the subsidy received by the assessee was not to be deducted from the cost of machinery for depreciation under section 43(1) of the Income-tax Act, 1961. The subsidy was considered a financial incentive, not specifically intended to offset machinery costs. The court found the subsidy was not an outright grant to reduce machinery costs, but an incentive for industrial growth in backward areas. The timing of subsidy receipt did not impact its nature, and it was not tied to the cost of individual components like machinery. The court's decision was against the Revenue, with no costs awarded in the tax cases. Case-Laws Income Tax Fri, 18 Jan 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22832