Loan Waiver Results in Reduction of Asset Cost for Depreciation

Waiver of Loan Granted To Meet Cost of Assets Results in Reduction of Cost of Asset for Depreciation

After the introduction of Explanation 10, it is no longer possible to contend that the subsidy given by the government, by whatever name called, cannot be reduced from the actual cost of the assets in terms of Section 43(1) of the Act for the purpose of allowing depreciation. But Explanation 10 does not cover the case of waiver of the loan. It covers only the grant of a subsidy or re-i mburse

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