1996 (10) TMI 61

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....as delivered by G. S. SINGHVI J. --- In all these petitions filed under section 256(2) of the Income-tax Act, 1961, by the Revenue, a prayer has been made for directing the Income-tax Appellate Tribunal to refer the question of law as to whether the Tribunal has been right in law in holding that the capital subsidy received by the assessee should not be deducted from the value of the assets whi....

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.... the assessee was accepted by the Commissioner of Income-tax (Appeals), Chandigarh, who directed the Inspecting Assistant Commissioner (Assessment) to allow depreciation on machinery and plant without reducing the cost of subsidy form the actual cost of plant and machinery. Feeling dissatisfied with the order of the Commissioner of Income-tax (Appeals), the Revenue filed an appeal before the Incom....

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....In our opinion, the submission of learned counsel cannot be accepted because the two decisions on which reliance has been placed by Shri Mahajan stand reversed/overruled by the Supreme Court in CIT v. P. J. Chemicals Ltd. [1994] 210 ITR 830. Their Lordships of the Supreme Court were considering the appeals filed by the Department against the judgments of the Andhra Pradesh High Court and some othe....