https://www.taxtmi.com/caselaws?id=23638 HC held that subsidies granted under Central/State schemes for setting up industries in backward areas are general incentive subsidies and not payments to meet, directly or indirectly, the cost of fixed assets. The reference to the value/cost of fixed assets in the schemes is only a measure to quantify the subsidy and does not alter its character. Consequently, no part of the subsidy can be deducted from the "actual cost" of assets for computing depreciation, investment allowance, development rebate, or for determining capital employed under section 80J of the Income-tax Act, 1961. The questions were answered in favour of the assessee and against the Revenue. en-us Fri, 09 Mar 1990 00:00:00 +0530 Thu, 04 Dec 2025 15:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23638 HC held that subsidies granted under Central/State schemes for setting up industries in backward areas are general incentive subsidies and not payments to meet, directly or indirectly, the cost of fixed assets. The reference to the value/cost of fixed assets in the schemes is only a measure to quantify the subsidy and does not alter its character. Consequently, no part of the subsidy can be deducted from the "actual cost" of assets for computing depreciation, investment allowance, development rebate, or for determining capital employed under section 80J of the Income-tax Act, 1961. The questions were answered in favour of the assessee and against the Revenue. Case-Laws Income Tax Fri, 09 Mar 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23638