Interest subsidy under WBIS 2000 and TUFS is a capital receipt

Issue Under Consideration 1. That on the facts and in the circumstances of the case, Ld. CIT(A) has erred in allowing assessee’s claim of interest subsidy as capital receipt and thereby deleting the addition of Rs.1,50,03,609/- without appreciating the fact that the amount is in the nature of revenue receipt. Brief Facts of the Case 2. The Assessee is a company engaged in the business of manufacture, sale and export of jute. During the previous year the assessee received subsidy of Rs.1,50,03,609/- comprising of a sum of Rs.1,29,87,383/- received from West Bengal Industrial Development C...