Judgment

VENKATACHALIAH, C.J.I.:- The first batch of cases consists of both civil appeals and petitions for grant of special leave preferred by the Revenue assailing the correctness of the opinion pronounced by several High Courts on a question of law referred to them for opinion on cases stated under Section 256 of the Income-tax Act, 1961. In some of the cases, there are some delays in filing them. We condone the delays. In the special leave petitions, we grant special leave. These are cases in which the High Courts have held that subsidies granted to industries on a percentage of the capital cost are not deductible from the "actual cost" under Section 43(1) of the Act for purpose of calculation of depreciation etc.

2. The second batch consists of matters in which the High Court has taken a contrary view against the assessee and where the assessee has come up in appeal. There is thus a divergence of judicial opinion on this question.

3. We may refer to the facts of one case on either side to place the controversy in perspective.

In Civil Appeal No. 2474 of 1991, the Commissioner of Income-tax, Andhra Pradesh 1, Hyderabad has questioned the correctness of the order dated 28-11-90 of t