2018 (8) TMI 1474 - HC - Income Tax

Nature of subsidy received under the Technology Upgradation Fund Scheme - revenue or capital receipt - Held that:- The avowed purpose of the scheme was to induce the entrepreneur to undertake investment in modernising the plant and machinery and assets and the objectives of the scheme clearly spelt out such purpose. In the context of the scheme, it could never have been understood to imply that the subsidy was for the purpose of the day-to-day business of the assessee or any entrepreneur qualified to receive it. The subsidy was clearly for the purpose of upgrading the machinery and plant and for acquiring capital assets. - Decided against the revenue.