Case Laws Analysis
REFERRED MUFG Bank Ltd. v. ACIT (International Taxation) 2020 TaxPub(DT) 4247 (Del-Trib)
REFERRED Voltas Ltd. v. Asstt. CIT 2020 TaxPub(DT) 2709 (Mum-Trib)
REFERRED Sesa Goa Ltd. v. Jt. CIT 2020 TaxPub(DT) 1546 (Bom-HC)
REFERRED Pr. CIT v. Ankit Metal & Power Ltd. 2019 TaxPub(DT) 5189 (Cal-HC)
REFERRED DCIT v. Adani Gas Ltd. & Vice-Versa 2018 TaxPub(DT) 6694 (Ahd-Trib)
REFERRED Chambal Fertilisers & Chemicals Ltd. v. JCIT 2018 TaxPub(DT) 5619 (Raj-HC)
REFERRED Kush Proteins (P) Ltd. v. Pr. CIT 2018 TaxPub(DT) 0748 (Guj-HC)
REFERRED CIT v. Chaphalkar Brothers 2017 TaxPub(DT) 5218 (SC)
REFERRED CIT v. Shree Balaji Alloys 2016 TaxPub(DT) 3528 (SC)
REFERRED Commissioner of Income Tax v. Meghalaya Steels Ltd. 2016 TaxPub(DT) 1343 (SC)
REFERRED Dy. CIT v. Gloster Jute Mills Ltd. 2014 TaxPub(DT) 3018 (Kol-Trib)
REFERRED CIT v. Mitesh Impex 2014 TaxPub(DT) 2620 (Guj-HC)
REFERRED CIT v. Sam Global Securities Ltd. 2013 TaxPub(DT) 2538 (Del-HC)
REFERRED CIT v. Pruthvi Brokers & Shareholders Pvt. Ltd. 2012 TaxPub(DT) 2671 (Bom-HC)
REFERRED CIT v. Sham Lal Bansal 2011 TaxPub(DT) 1562 (P&H HC)
REFERRED CIT v. Jai Parabolic Springs Ltd. 2008 TaxPub(DT) 1881 (Del-HC)
REFERRED Goetze (India) Ltd. v. CIT 2006 TaxPub(DT) 1528 (SC)
REFERRED National Thermal Power Co. Ltd. v. CIT 1998 TaxPub(DT) 0342 (SC)
REFERRED Jute Corporation of India Ltd. v. CIT & Anr. 1991 TaxPub(DT) 0505 (SC)
REFERRED CIT v. Cellulose Products of India Ltd. 1985 TaxPub(DT) 0441 (Guj-HC)
REFERRED CIT v. Kanpur Coal Syndicate 1964 TaxPub(DT) 0339 (SC)
 
The Tax Publishers2020 TaxPub(DT) 5453 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 4

Purpose/object of interest subsidy under Technology Upgradation Fund Scheme was to encourage setting up of new industrial units and expansion of existing industrial units and, therefore, receipt of interest subsidy was clearly on capital account. Accordingly, subsidy was capital receipt not chargeable to tax.

Income - Capital or revenue receipt - Interest subsidy under Technology Upgradation Fund Scheme (TUFs) for textile and Jute Industries -

Assessee, an Exporter of Cotton made UPS, Fabrics, Yarns, etc., manufacturing of Denim Fabrics, Textile Material and Garments received interest subsidy under Technology Upgradation Fund Scheme (TUFs) for textiled and Jute Industries. AO treated interest subsidy as revenue receipt and brought the same to tax. Held: Purpose/object of interest subsidy under Technology Upgradation Fund Scheme was to encourage setting up of new industrial units and expansion of existing industrial units. The receipt of interest subsidy was clearly on capital account. Accordingly, subsidy was capital receipt not chargeable to tax.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :


INCOME TAX ACT, 1961

Section 254(1)

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