Subsidy cannot be treated as a payment to meet any portion of actual cost of Capital Asset

ACIT Vs Inox Air Products Private Limited (ITAT Pune) The only issue raised in the assessee’s appeal is against  the direction of the ld. CIT(A) for reducing the amount of subsidy from the value of assets for the purpose of granting depreciation. From Explanation 10 to section 43(1) of the Act it is immensely clear that the same is triggered where a portion of cost of an asset has been paid directly or indirectly by the Central Government etc., in the form of a subsidy or grant. It has no application where the object of the scheme under which the subsidy is granted is to accelerate industri...