https://www.taxtmi.com/caselaws?id=398498 The Tribunal upheld the deletion of depreciation disallowance on the capital subsidy received under the Technology Upgradation Fund (TUF) scheme and treated the interest subsidy as a capital receipt for both assessment years. The decision was based on the purpose test in subsidy cases, supported by legal precedents and the principle that the nature of subsidies is determined by their intended purpose. The appeals of the revenue were dismissed, affirming the orders of the ld. Commissioner of Income Tax (Appeals) regarding the treatment of subsidies as capital receipts. en-us Thu, 10 Sep 2020 00:00:00 +0530 Thu, 17 Sep 2020 18:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=398498 The Tribunal upheld the deletion of depreciation disallowance on the capital subsidy received under the Technology Upgradation Fund (TUF) scheme and treated the interest subsidy as a capital receipt for both assessment years. The decision was based on the purpose test in subsidy cases, supported by legal precedents and the principle that the nature of subsidies is determined by their intended purpose. The appeals of the revenue were dismissed, affirming the orders of the ld. Commissioner of Income Tax (Appeals) regarding the treatment of subsidies as capital receipts. Case-Laws Income Tax Thu, 10 Sep 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=398498