Depreciation Vs. Actual cost: Government subsidy for setting up new industry

Pr. CIT Vs M/s. Welspun Steel Ltd. (Bombay High Court)

If Government subsidy was intended as an incentive to encourage entrepreneurs to move to backward areas and establish industries. In such a case, specified percentage of the fixed capital cost, which was the basis for determining the subsidy, would be granted. The Court held that, such basis for determining the subsidy was only a measure adopted under the scheme to quantify the financial aid and it was not a payment, directly or indirectly to meet any portion of the actu

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