1995 (11) TMI 8

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.... the following two questions for the opinion of this court: " (1) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal ought to have held that capital subsidy granted by the Central Government to the company to the extent of Rs. 11,25,000 was intended to meet the actual cost of the assets of the company within the meaning of section 43(1) ? (2) Whether, o....

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.... nothing in the Central Subsidy Scheme to indicate that the entrepreneurs were granted the subsidy for the specific purpose of meeting a portion of the cost of the assets. No doubt, the actual subsidy is quantified by determining the specified percentage of the capital asset. " The specified percentage of the fixed capital cost taken as the basis for determining the subsidy is only a measure adopt....

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....ssed by the Joint Secretary to the Government of Andhra Pradesh (Industries and Commerce Department) to the Secretary, Federation of A. P., Chamber of Commerce and Industry, Hyderabad, offering clarification regarding the nature of, subsidy granted under the incentive schemes. It was mentioned in that letter that the subsidy or other financial concessions under the incentive scheme were intended t....