https://www.taxtmi.com/caselaws?id=456103 The ITAT Delhi dismissed the Revenue's appeal regarding disallowance of depreciation under Section 32(1) read with Section 43(1). The assessee company had acquired assets using government grants from excise duty exemptions obtained by the demerged company. Following coordinate bench decisions and Supreme Court precedent in CIT vs. Meghalaya Steels Ltd., the Tribunal held that excise refunds constitute revenue receipts forming part of business profits and cannot be reduced from plant and machinery costs. The CIT(A)'s order allowing depreciation on the full cost of assets was upheld, confirming that government grants recorded as deferred grants do not reduce asset costs for depreciation purposes. en-us Wed, 15 Sep 2021 00:00:00 +0530 Fri, 28 Jun 2024 19:40:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456103 The ITAT Delhi dismissed the Revenue's appeal regarding disallowance of depreciation under Section 32(1) read with Section 43(1). The assessee company had acquired assets using government grants from excise duty exemptions obtained by the demerged company. Following coordinate bench decisions and Supreme Court precedent in CIT vs. Meghalaya Steels Ltd., the Tribunal held that excise refunds constitute revenue receipts forming part of business profits and cannot be reduced from plant and machinery costs. The CIT(A)'s order allowing depreciation on the full cost of assets was upheld, confirming that government grants recorded as deferred grants do not reduce asset costs for depreciation purposes. Case-Laws Income Tax Wed, 15 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456103