Receipt of government grant in lieu of Financial Restructuring Plant not to be reduced from capital assets

Advertisement Gujarat Urja Vikas Nigam Ltd Vs CIT (ITAT Ahmedabad) ITAT Ahmedabad held that government grants received in lieu of FRP i.e. Financial Restructuring Plant is not required to be reduced from the cost of capital assets. Accordingly, reopening of assessment unjustified. Facts- The case of the assessee was reopened exercising revisionary jurisdiction finding the assessment order to be erroneous causing prejudice to the Revenue on account that the Book Profits of the assessee, for the purposes of paying taxes thereon u/s. 115JB of the Act, having not been enhanced by the depreciati...