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2017 (5) TMI 123 - AT - Income TaxDepreciation on lease hold building and plant & machinery - disallowance - case of Revenue is that since building and infrastructure were stated to have been provided by the Govt. of Gujarat/Govt. of India/German Government, depreciation claimed by the assessee and allowed in the assessment mainly on lease holding building and plant & machinery was not in order - whether the contributions made by three governments, viz. Govt. of India, Govt. of Gujarat and German Government was to be treated as a contribution on behalf of the promoters or it was to be treated as a subsidy by the Government? Held that: - the ld.AO has misconstrued whole constitution of the Society. He was not justified to assume that three governments who are promoters of the Society have given subsidy instead of contribution for creation of the Society. Here the governments are doing business themselves by constituting the Society. It is not a benefit given by the government for any particular assessee or class of assessees by exercising its Legislative powers. The ld.CIT(A) has considered this aspect and therefore allowed the claim of the assessee. After going through the order of the ld.CIT(A), we do not find any error in it - appeal dismissed - decided against Revenue.
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