Case Law Details
DCIT Vs Grasim Industries Ltd (ITAT Mumbai)
Interest subsidy under technology upgradation fund scheme is capital receipt
ITAT Mumbai held that interest subsidy received under technology upgradation fund scheme, though credited in the net off against the interest expenditure in the books of account is still capital in nature.
Facts- The main issue in the assessment was whether the subsidy received by the assessee for technology upgradation fund amounting to ₹ 83,426,992/– is capital receipt not chargeable to tax or revenue receipt chargeable to tax.
AO considered it as a revenue receipt. On appeal before the learned CIT – A has held that subsidy received by the appellant company under technology upgradation fund scheme is a capital receipt. The learned AO is aggrieved with the order of the learned CIT – A and therefore has challenged this decision of the learned CIT – A.
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