1991 (11) TMI 41

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....heme for Central outright grant should not be deducted from the value of the plant and machinery to determine the actual cost for the purpose of granting depreciation ? " The factual antecedents are as follows : M/s. Kalinga jute Products (P) Ltd (hereinafter referred to as "the assessee") received a sum of Rs. 2,88,634 as a subsidy from the Government of Orissa under the Central Outright Grant of Subsidy Scheme, 1971. The Assessing Officer held that this amount was deductible from the cost of the plant and machinery for the purpose of calculation of depreciation. Reference was made to section 43, clause (1), of the Act for finding out the meaning of the expression "actual cost". He observed that a part of the cost of the assets was met ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... cost of the assets without making any deduction for the subsidy received. The Revenue challenged his conclusion before the Tribunal and the appeal was numbered as ITA No. 184 (CTK) of 1984. The Tribunal, after referring to a Special Bench judgment of the Tribunal in Pioneer Match Works v. ITO [1983] 3 ITD 714, concurred with the conclusion of the Commissioner of Income-tax (Appeals). It held that the principles have been rightly applied and, therefore, there was no scope for any interference with the appeal filed by the Revenue. Mr. A. K. Ray, learned standing counsel, emphasises the language of clause (1) of section 43 which reads as follows : "In sections 28 to 41 and in this section, unless the context otherwise requires (1) 'actu....