Interest subsidy is capital receipt hence not taxable

Birla Corporation Limited Vs DCIT (ITAT Kolkata) ITAT Kolkata held that interest subsidy received under the amended Rajasthan Investment Promotion Scheme, 2003 is capital receipt and hence the same is not chargeable to tax. Facts- The Department’s appeal relates to the assessee’s claim that interest subsidy, since renamed “Capital Investment Subsidy”, of Rs. 3,04,22,210/- received under the amended Rajasthan Investment Promotion Scheme, 2003 in respect of expansion undertaken at the assessee’s Chanderia Cement Works should be treated as a capital receipt. The AO held that the subsidy...