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2012 (8) TMI 401 - HC - Income TaxCapital grant - taxability - assessee charged with duty of implementing a scheme of industries in Delhi which had been formulated by the Delhi Government and as a developing agency and not as the owner of this scheme and had been given the grant only for implementing the scheme - Held that:- It is amply clear that the amount in this regard is a capital grant received in order to carry out the policies of the Government in the manner it is sought to be utilized by the assessee and no administrative expenditure has been incurred out of it. CIT(A) rightly deleted the addition - Decided in favor of assessee Depreciation - non-entitlement of depreciation of the building constructed with the aid of the grant in view of the provisions of Section 43(1) - Held that:- It is clarified that it would be dealt with in the appropriate manner at the relevant stage. Maintenance receipts credited to Maintenance Fund - addition - Held that:- There is no trust under which the assessee can be said to hold the receipts. The assessee is collecting the maintenance charges for maintaining the properties of the housing scheme, and obviously for defraying the expenses. The receipts are its own and merely because some expenditure is required to be incurred on maintenance, the funds collected do not become funds kept or held in trust. Addition confirmed - Decided in favor of Revenue.
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