1988 (8) TMI 36

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..... this reference under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case and in view of section 43(1) of the Income-tax Act, the Tribunal is justified in holding that the amount .....

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..... sidy for the purpose of allowing depreciation in accordance with the provisions of section 43(1) of the Act. The appeal preferred by the assessee in that behalf before the Commissioner of Income-tax (Appeals) was allowed and the assessing authority was directed to allow depreciation on the plant and machinery without deducting the capital subsidy from the cost of the plant. Aggrieved by the order .....

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..... ng that the amount of capital subsidy received by the assessee would not go to reduce the cost of assets for the purpose of allowing depreciation. Our answer to the question referred to this court is, therefore, in the affirmative, in favour of the assessee and against the Revenue. In the circumstances of the case, parties shall bear their own costs of this reference.    
Case law .....

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