Depreciation Disallowance Deleted as Subsidy Was Capital in Nature

Puri Oil Mills Limited Vs ACIT/ DCIT (ITAT Delhi) Capital Subsidy for Hydro Power Project Not to Reduce Asset Cost: Delhi ITAT Restores Full Depreciation; FA-2015 Amendment Held Prospective Delhi ITAT, Delhi Bench ‘F’, in Puri Oil Mills Ltd. Vs ACIT/DCIT (ITA No.1681/Del/2018, AY 2014-15, order dated 19-12-2025), allowed the assessee’s appeal and deleted disallowance of depreciation of ₹72.90 lakh made by reducing capital subsidy of ₹4.86 crore from the cost of fixed assets. The Tribunal held that the subsidy received under MNRE policy for setting up Small Hydro Power (SHP) projects ...