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2016 (7) TMI 1571 - AT - Income TaxSubsidy from Central Government on account of ‘interest refund’ - Revenue or capital receipt - Whether subsidy was granted towards reducing interest burden of the assessee and received after the commencement of business? - HELD THAT:- In order to sustain competitiveness in the domestic as well as international markets and overall long-term viability of the industry, the concerned Ministry adopted the TUFS scheme envisaging Technology Upgradation of the Industry. Hence, the subsidy received in this regard falls into capital field. we find that the assessee received interest as refund from Central Government, as per the scheme formulated to encourage additional investments in order to become competitive and cost effective and to provide financial support for capital outlay for expansion and modernisation and by following order of M/S GLOSTER JUTE MILLS LTD [ 2014 (7) TMI 172 - ITAT KOLKATA] held that the subsidy received for modernising assessee’s existing infrastructure is capital in nature - we dismiss the ground no-1 raised by the Revenue. Allowance of unabsorbed depreciation and business of 100% EOU Unit (100% exemption u/s10B) against the taxable income of the assessee from other unit - HELD THAT:- In the present case, the Coordinate Bench observed that the similar issues have been decided in favour of assessee by this Tribunal in earlier years and no order as such brought to our notice that the Hon’ble Jurisdictional High Court has reversed the order of the Tribunal. In view of the same, we find no merit in the order of CIT(Appeals) and accordingly, ground no-2 raised by the Revenue is dismissed.
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