https://www.taxtmi.com/caselaws?id=759751 ITAT Chandigarh dismissed the assessee's appeal regarding computation of actual cost of assets for depreciation purposes. The tribunal held that grant-in-aid received specifically for plant and machinery and technical civil works must be deducted from the asset cost when calculating depreciation under Section 43(1) read with Explanation 10. The AO correctly applied the mandate that grants earmarked for specific assets reduce their acquisition cost. The tribunal followed literal construction of the fiscal statute, rejecting the assessee's argument for double benefit - both grant-in-aid and full depreciation on unreduced asset value. The Bombay HC decision in Welspun Steel was distinguished as it involved sales tax benefits, not direct asset-specific grants. en-us Wed, 31 Jul 2024 00:00:00 +0530 Mon, 07 Oct 2024 16:26:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759751 ITAT Chandigarh dismissed the assessee's appeal regarding computation of actual cost of assets for depreciation purposes. The tribunal held that grant-in-aid received specifically for plant and machinery and technical civil works must be deducted from the asset cost when calculating depreciation under Section 43(1) read with Explanation 10. The AO correctly applied the mandate that grants earmarked for specific assets reduce their acquisition cost. The tribunal followed literal construction of the fiscal statute, rejecting the assessee's argument for double benefit - both grant-in-aid and full depreciation on unreduced asset value. The Bombay HC decision in Welspun Steel was distinguished as it involved sales tax benefits, not direct asset-specific grants. Case-Laws Income Tax Wed, 31 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759751