2000 (7) TMI 224

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....Visakhapatnam, dt. 18th May, 1995, for asst. yr. 1991-92. 2. The assessee is an AOP engaged in the business of production of shrimp seeds. The assessee claimed depreciation of Rs. 23,68,961 for its research centre and Rs. 8,68,774 for Nellore Farm. From the detailed statement furnished by the assessee, the AO found that all the assets were acquired by the assessee out of grants received from Go....

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.... the assessee was for acquisition of fixed assets besides for other things like revenue expenditure, know-how, etc. and this being a contribution towards corpus fund, the same cannot be considered as meeting part of the cost of fixed assets. The learned counsel for the assessee relied upon the decision of the Hon'ble Supreme Court of India in CIT vs. P.J. Chemicals Ltd. (1994) 121 CTR (SC) 201 : (....

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....s and establish industries, the specified percentage of the fixed capital cost, which is the basis for determining the subsidy, being only a measure adopted under the scheme to quantify the financial aid, is not a payment, directly or indirectly, to meet any portion of the 'actual cost'. The expression 'actual cost' in s. 43(1) of the IT Act, 1961, needs to be interpreted liberally. Such a subsidy....