COMMISSIONER OF INCOME TAX Vs. PRATAP COMMERCIAL COMPANY

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has sent these references under Section 256(1) of the Income-tax Act, 1961, along with the statement of cases and the question of law arising out of the order of the Income-tax Appellate Tribunal is as under :

(2.) IN these cases, the assessees have received Central Government subsidy during the previous year relating to the assessment year under consideration. The INcome-tax Officer, while completing the assessment, deducted the amount of subsidy so received from the cost of plant and machinery, building, etc., for the purpose of granting depreciation and investment allowance under Section 32 of the INcome-tax Act, 1961.