The Assessee  transferred certain amount from the Capital Reserve which was made in the year 2006-07. The Assessing Officer disallowed the depreciation on account of written back from Capital Reserve.  Held that written down value under section 43(6) does not encompass any reduction in value of existing asset in block except when it is sold. Making any adjustment in written down value of block on account of waiver of loan in respect of an asset which was purchased in an earlier year  is not permissible. Tribunal also observed that   subsidy or grant or waiver or concession or reimbursement received in terms of Explanation 10 to section 43 (1) adjusts the actual cost of asset, any amount of such incentive or reimbursement or waiver etc. which does not fall within the realm of the Explanation 10 assumes the character of income directly in the year of its receipts, with effect from 1-4-2016, without disturbing the actual cost or written down value of block of asset.   (AY. 2011-12)