Incentives as subsidies aren't payments for asset costs, excluded from Explanation 10, Section 43(1), Income Tax Act.

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....Incentive in the form of subsidy cannot be considered as a payment directly or indirectly to meet any portion of the actual cost and thus it falls outside the ambit of Explanation 10 to Section 43(1) of the Act - For the purpose of computing depreciation allowable to the assessee, the subsidy amount cannot be reduced from the cost of the capital asset - AT....