Treatment of subsidy granted to set up a wind project

CA Suraj R. Agrawal Case Summary:- Facts of the case: 1. During the financial year 2001-02 the assessee had installed wind energy project at a cost of Rs.1189.87 lakhs. 2. The assessee accordingly applied for the said capital subsidy which was granted to the assessee during the relevant financial year 2007-08 at Rs.20 lakhs. 3. During the subsequent year i.e. F.Y. 2008-09, assessee had to refund back subsidy to the extent of Rs.10 lakhs. 4. The AO observed that the assessee had already claimed 100% depreciation on the windmill, and as such the subsidy was required to be reduced from the cost...