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2013 (1) TMI 39 - HC - Income TaxDepreciation - Capital subsidy – Commissioning of Power Plant – Explanation 10 to Section 43(1) – Whether subsidy received by assessee directly or indirectly from Central Government or a State Government, is reduced from actual cost of asset for the purpose of calculation of depreciation - Treatment of subsidy from cost of assets for calculating depreciation - Assessee is engaged in manufacturing sugar, ethanol, rectified spirit and co-generation of power - Assessee has received the subsidy from the Government of Karnataka for commissioning co-generation plant – Held that:- Yes, According to Explanation 10 and proviso to sub-section (1) of Section 43, the subsidy amount shall be deducted in the actual cost of the asset of the assessee. The contention of the assessee that the subsidy received towards the Generation Plant shall not be reduced from the actual cost of the assets is not correct. In favour of revenue
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