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2020 (11) TMI 418 - AT - Income TaxValuation of assets - Reducing the amount of subsidy from the value of assets for the purpose of granting depreciation - HELD THAT:- With the above amendments, subsidy falls within the definition of `income’ u/s 2(24) and resultantly chargeable to tax in the year of receipt as per section 145B(3) in all cases except where Explanation 10 to section 43(1) gets magnetized, in which eventuality, it will go to reduce the cost of assets. The contention of the ld. DR about either the reduction of the amount of subsidy from the cost of assets in terms of the Explanation 10 or treating it as chargeable to tax will gain relevance in the periods covered by the afore discussed amendments. Since such amendments are not applicable to the year under consideration, the case will be governed by the ratio decidendi in the judicial precedents discussed supra. We are satisfied that the ld. CIT(A) was not justified in directing to exclude the amount of subsidy allowed to the assessee by the States of Jharkhand and Maharashtra from the cost of assets for the purposes of allowing depreciation. - Decided in favour of assessee.
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