Karnataka High Court
Commissioner Of Income-Tax vs Progressive Engineering And Annapurna ... on 5 March, 1992
Equivalent citations: [1993]200ITR231(KAR), [1993]200ITR231(KARN)
Author: Shivaraj V. Patil
Bench: Shivaraj V. Patil
JUDGMENT
1. This is a reference at the instance of the Revenue. The question that is referred reads thus :
"Whether, on the facts and circumstances of the case the Appellate Tribunal is right in law in holding that the subsidy received by the assessee should not be deducted from the cost of the capital asset for the purpose of grant of depreciation and investment allowance ?"
2. The matter is on board today only because the notice to the respondent has not yet been returned, but Mr. H. Raghavendra Rao, learned counsel for the Revenue, fairly states that the question is to be answered in the affirmative and in favour of the assessee in view of the decision of this court in CIT v. Diamond Dies Mfg. Corporation Ltd. [1988] 172 ITR 655. Accordingly, the question is answered in the affirmative and in favour of the assessee.