1995 (1) TMI 30

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....see-company was not allowable as deduction in computing the total income under the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that the sum of Rs. 2,08,003 being the conditional subsidy received from the Rajasthan Government under the subsidised housing scheme for industrial workers did not form part of the ' actual cost ' of the labour colony under section 43(1) and, consequently, the assessee-company was not entitled to get deduction for depreciation of Rs. 4,342 on the said amount under section 32 of the Income-tax Act ? " R. A. No. 14 " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the s....

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....sed housing scheme for industrial workers did not form part of the " actual cost " of the labour colony under section 43(1) and, consequently, the assessee-company was not entitled to get deduction for depreciation of Rs. 4,233 on the said amount under section 32 of the Income-tax Act. Learned counsel for the assessee has placed reliance on the decision given by the apex court in CIT v. P. J. Chemicals Ltd. [1994] 210 ITR 830 and the decision given by this court in the case of CIT v. Ambica Electrolytic Capacitors P. Ltd. [1991] 191 ITR 494. We have gone through those judgments as welt. The word " actual cost " which was interpreted by this court as well as the apex court was considered not to include the subsidy which is introduced a....