1. K. A. THANIKKACHALAM, J.---At the instance of the Department, the Tribunal referred the following questions, for the assessm ent years 1975-76 and 1976-77, for the opinion of this Court, under section 256(1) of the Income-tax Act: "(1) Whether, on- the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in holding that the assessee is entitled to initial depreciation in, respect of the machinery installed during the year?
(2) Whether, the Tribunal's finding that the subsidy received from SIPCOT should not be taken into account while arriving at the cost of the assets under section 43(1.) for purpose of depreciation is sustainable in law?"
2. Inasmuch as the order passed by the Tribunal on this point is in. Accordance with the above cited decision of the Supreme Court, we answer this question No. 2 referred to us in the affirmative and against the Department.