VARDHMAN OIL EXTRACTION AND CHEMICALS PRIVATE LIMITED, AMRITSAR Vs. COMMISSIONER OF INCOME TAX, AMRITSAR

JUDGEMENT

(1.) Following questions of law have been referred for the opinion of this Court by the Income Tax Appellate Tribunal, Amritsar Bench, amritsar, (for short, 'the Tribunal') arising out of its order dated 27.8.1992 in ITA No.210 (ASR)/1988, for the assessment year 1983-84:-

(2.) The Tribunal following the judgment of this Court in CIT V/s. Jindal Bros. Rice Mills, 1989 179 ITR 470, decided the issue giving rise to the above questions, against the assessee. It is not disputed that the view itr No.18 of 1997 2 taken by this Court in Jindal Bros's case has since been over-ruled by the HON BLE Supreme Court in CIT V/s. P. J. Chemicals Limited, 1994 210 ITR 830 and it has been held that amount of subsidy is not to be reduced from the cost of machinery and building for calculating depreciation. Accordingly, the questions referred are answered in favour of the assessee and against the revenue. Reference is disposed of accordingly.