27 July 2010
A purchase of Machine for production as against Bank Term Loan. In the First Year, the capital subsidy received from Govt. and used for repayment of Term Loan.
27 July 2010
Reduce the value of the asset and then calculate the depreciation. There was a time when people were taking it into capital. Assessment Officers were reducing asset value and calculating depreciation. Finally the Supreme Court had passed order that it is capital receipt and not taxable. Immediately in the next budget the FM rectified the mistake and put it as reduction in the value of asset to calculate depreciation.
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