DEPUTY COMMISSIONER OF INCOME TAX Vs. GLOSTER JUTE MILLS LTD.
INCOME TAX APPELLATE TRIBUNAL
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Shamim Yahya, Member (A) -
(1.) ITA No. 687/Kol/2010
(2.) THIS appeal by the assessee emanates out of the order of ld. Commissioner of Income Tax (Appeals) -XIII, Kolkata dated 29.01.2010 for the assessment year 2005 -06. Ground of appeal reads as under: -
That on the facts and in the circumstances of the case, ld. CIT(A) was not justified rather grossly erred in holding interest subsidy of Rs. 77,18,242/ - received under the Technology Upgradation Fund Scheme (TUFS) as revenue receipt.
(3.) IN this case the assessee is a Public Limited Company engaged in manufacturing of Jute & jute allied products and generation of power. During the assessment proceedings the Assessing Officer noted that under the "Technology Upgradation Fund Scheme" (in short TUFS), the assessee received subsidy from Central Government of Rs. 77,18,242/ - on account of 'interest refund'. Though the assessee debited the P & L a/c. with the net amount of interest, after adjustment of the abovementioned subsidy of Rs. 77,18,242/ -. In computing the assessable income the assessee deducted the said amount on the plea that the subsidy was capital in nature.;
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