IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME INCOME INCOME TAX REFERENCE NO. 604 OF 1998 TAX REFERENCE NO. 604 OF 1998 TAX REFERENCE NO. 604 OF 1998 The Commissioner of Income-tax. ... Applicant. V/s. M/s.Nanavati & Co.P.Ltd. ... Respondent. A.S.Rao for the Applicant. CORAM CORAM CORAM : V.C.DAGA AND J.P.DEVADHAR, JJ. : V.C.DAGA AND J.P.DEVADHAR, JJ. : V.C.DAGA AND J.P.DEVADHAR, JJ. DATED DATED DATED : 29th March, 2005. : 29th March, 2005. : 29th March, 2005. P.C. P.C. P.C. : : : ---- ---- ---- . Heard learned counsel for the applicant. The tribunal has referred following question for the opinion of this Court: "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the amount of subsidy received by the assessee was not liable to be deducted from the cost of the plant and machinery for the purpose of computing depreciation and investment allowance? 2. The above question has already been answered by the Apex Court in the case of C.I.T. v. C.I.T. v. C.I.T. v. P.J.Chemicals P.J.Chemicals P.J.Chemicals Ltd. Ltd. Ltd., (1994) 210 ITR 830 (SC) and Division Bench of this Court in the case of C.I.T. C.I.T. C.I.T. v.v.v. Menezes Farmaco Menezes Farmaco Menezes Farmaco, (1999) 236 ITR (Bom) in favour of assessee. In this view of the matter, the question referred is answered in affirmative. . Reference stands disposed of accordingly with no order as to costs. *****