https://www.taxtmi.com/caselaws?id=362411 The Court upheld the deduction of interest paid on obtaining a loan under Section 36(1)(iii) of the Income Tax Act, 1961, stating that the investment made by the assessee aligned with its business activities. Additionally, the Court classified the subsidy received under a State Government scheme as a capital receipt, intended to enhance manufacturing facilities or acquire advanced equipment, in line with legal precedents. The appeals were dismissed, affirming the treatment of interest deductions and subsidies as permissible and capital receipts, respectively. en-us Tue, 19 Jun 2018 00:00:00 +0530 Fri, 06 Sep 2019 10:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=362411 The Court upheld the deduction of interest paid on obtaining a loan under Section 36(1)(iii) of the Income Tax Act, 1961, stating that the investment made by the assessee aligned with its business activities. Additionally, the Court classified the subsidy received under a State Government scheme as a capital receipt, intended to enhance manufacturing facilities or acquire advanced equipment, in line with legal precedents. The appeals were dismissed, affirming the treatment of interest deductions and subsidies as permissible and capital receipts, respectively. Case-Laws Income Tax Tue, 19 Jun 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=362411