https://www.taxtmi.com/caselaws?id=779076 ITAT held the capital subsidy, having been refunded to the Government and shown in the assessee's books as a capital item, could not be treated as revenue receipt, and deleted the AO's addition. Depreciation on purchased computer software was allowed after verification of bills, payments and subsequent treatment by Revenue, so the disallowance was deleted. Disallowance of interest u/s 36(1)(iii) was deleted for lack of nexus between interest-bearing funds and a longstanding interest-free advance (originally made in FY 2007-08) and because no prior-year disallowance was made. Assessee's appeal allowed. en-us Thu, 04 Sep 2025 00:00:00 +0530 Sat, 27 Sep 2025 08:34:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=779076 ITAT held the capital subsidy, having been refunded to the Government and shown in the assessee's books as a capital item, could not be treated as revenue receipt, and deleted the AO's addition. Depreciation on purchased computer software was allowed after verification of bills, payments and subsequent treatment by Revenue, so the disallowance was deleted. Disallowance of interest u/s 36(1)(iii) was deleted for lack of nexus between interest-bearing funds and a longstanding interest-free advance (originally made in FY 2007-08) and because no prior-year disallowance was made. Assessee's appeal allowed. Case-Laws Income Tax Thu, 04 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=779076