Dismissing Revenue’s appeal, the Tribunal held that; After analyzing the terms of the scheme (TUFS) and finding that the purpose of the scheme was to induce modernization of plant and machinery used in textile industry, held the interest subsidy received under TUFS Scheme and to be capital in nature following the proposition laid down by the Apex Court for determining the nature of subsidy in the case of Sawhney Steels & Press Works Ltd.  v. CIT  (1998 )228 ITR 253  (SC)  CIT v. Ponni Sugars & Chemicals Ltd   (2008) 306 ITR 392 (SC)  (AY. 2002-03 to 2005-06)