Cit vs Mohta Oil Industries (P) Ltd.
2007 Latest Caselaw 1197 Del

Citation : 2007 Latest Caselaw 1197 Del
Judgement Date : 4 July, 2007

Delhi High Court

Cit vs Mohta Oil Industries (P) Ltd. on 4 July, 2007

Bench: M B Lokur, V Gupta

JUDGMENT

1. In this reference under Section 256(1) of the Income Tax Act, 1961 the following question of law has been referred for our opinion:

Whether the Tribunal was right in holding that the amount of capital subsidy received by the assessed could not be adjusted for determining the cost of the acquisition of building and plant and machinery for purposes of grant of depreciation and investment allowance under the Income Tax Act, 1961?

2. The admitted position is that in view of the decision of the Supreme Court in CIT v. P.J. Chemicak Ltd. , the question is required to be answered in the affirmative, in favor of the assessed and against the revenue.

3. The reference is disposed of accordingly.

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