Tax Tribunal Rules on Subsidy and Depreciation Calculations; Upholds Deductions Without Notional Adjustments.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The ITAT Pune ruled on two key issues: 1) Treatment of subsidy under IPS Scheme 2007 for depreciation calculation - Held that subsidy should not be reduced from actual cost of fixed assets u/s 43(1) for depreciation calculation, following precedent. Directed AO to delete the addition of depreciation. 2) Disallowance of claim u/s 80-IA - Held that CIT(A) was justified in directing AO to allow deduction u/s 80IA(4)(iv)(a) without deducting brought forward loss or unabsorbed depreciation on notional basis, based on previous assessment years.....