The Tribunal held that the purpose of \u00a0giving the incentive in the form of \u00a0interest subsidy under the technology upgradation fund scheme was to encourage capital investment by the \u00a0\u00a0eligible unit in \u00a0the form of \u00a0specified machinery in order to induct State-of -the-Art or \u00a0Near-State-of -the-Art Technology or \u00a0at \u00a0least a significant step up from the present technology level to \u00a0a substantially higher one. The amount of \u00a0interest subsidy received by the assessee was a receipt of \u00a0capital nature. The Assessing Officer was to verify the issue of \u00a0utilisation of \u00a0the subsidy \u00a0if the purpose of meeting the interest Liability on loans and advances taken by it to set up its plant and machinery, the subsidy incentive could be considered as a capital receipt not chargeable to tax , \u00a0otherwise, it \u00a0had to be treated as a revenue receipt.( AY.2008-09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 4 : Charge of income-tax \u2013 Capital or revenue \u2013 Interest subsidy \u2013 Technology upgradation fund scheme- Encourage capital investment by eligible unit in form of specified machinery- The AO is directed to verify issue of utilisation of amount of subsidy. [ S.28(i), 254(1) ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-14138","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3G2","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=14138"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14138\/revisions"}],"predecessor-version":[{"id":14139,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14138\/revisions\/14139"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=14138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=14138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=14138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}