TMI Blog2002 (8) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... econd appellate order of the Tribunal dated May 15, 1985? - (ii) Whether, Tribunal was right in law in holding that the subsidy received by the petitioner from the State Government under the Subsidised Industrial Housing Scheme is to be deducted from the cost of machinery and plant and building under section 43(1) of the Income-tax Act, 1961, for determining the actual cost for the purposes of dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2-8-2002 - Judge(s) : R. JAYASIMHA BABU., K. P. SIVASUBRAMANIAM. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J.-The assessee is a co-operative sugar mill which had received subsidy from the State Government for putting up tenements for its workers, during the assessment year 1979-80. In computing the income for that year, the assessee claimed depreciation in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this issue was not one of the issues raised in those appeals. At the instance of the assessee, the following two questions have been referred to us: "(i) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the order of the Commissioner of Income-tax under section 263 was with jurisdiction when the assessment order had merged with the appellate or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act which was substituted by the Finance Act, 1988, which was again amended by the Finance Act, 1989, with retrospective effect from June 1, 1988, held that as a consequence of the amendment made with retrospective effect, the power of the Commissioner under section 263 of the Act shall extend and shall be deemed always to have extended to such matters as had not been considered and decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 28 to 41 of the Act. This includes section 32 which deals with depreciation. The assessee's claim for depreciation for the tenements could therefore only be with reference to the "actual cost" as computed in accordance with section 43(1) of the Act. The Commissioner was, therefore, right in holding that the amount of subsidy should be deducted from the total cost of the construction of the tenem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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