account of
interest subsidy refund under the Technology Up-gradation Fund Scheme (TUFS).
These amounts were credited in the profit and loss account under ... chargeable to tax for the following
reasons:-
1. Subsidy received under TUFS of Rs.20,16,226/-:
"(a) The Assessee explained the objective
interest reimbursement of Rs.1,81,81,351/- under TUFS.
3. That the Ld. CIT (A) has erred in law in not allowing the claim ... reimbursement of Rs.1,81,81,351/- under Technology
Upgradation Fund Scheme (TUFS) as capital receipt.
2
Following grounds raised by the Assessee
weaving, processing and garment sector of textile industry, which is purchased under TUFS on or after the 1st day of April, 2001 but before
Commissioner vs Hy- Tuf Steels Pvt. ... on 3 April, 2014
Author: Akil Kureshi
Bench: Akil Kureshi , Sonia Gokani
O/TAXAP/282/2014 ORDER ... AHMEDABAD
TAX APPEAL NO. 282 of 2014
================================================================
COMMISSIONER....Appellant(s)
Versus
HY- TUF STEELS PVT. LTD.....Opponent(s)
================================================================
Appearance:
MR GAURANG H BHATT, ADVOCATE
M/S. Grasim Industries Ltd., Mumbai vs Dcit Cir - 6(3), Mumbai on 4 July
subsidy of Rs. 3,25,00,000/- under Technology Up gradation
Fund (TUF)
"That an amount of Rs. 3,25,00,000/- received ... assessee on
account of interest subsidy under Technology Up-gradation Fund (TUF)
scheme be excluded from the total income since it is a capital receipt
Ministry of Textiles, Government of India has formulated
Technology Upgradation Fund Scheme (TUFS) for Textile and Jute
Industry. Under the said scheme, the interest subsidy ... claim that the interest subsidy received by the assessee
under TUFS is a capital receipt, hence, not taxable. Thus, he
submitted, the issue is covered
Excess claim of deprecation of RS.
5,42,93,162/- under TUF Scheme and capital subsidy of Rs.
25,50,000/-.
3. Briefly stated ... confirmed the additions on account f excess claim of depreciation
under TUF Scheme and disallowance out of capital subsidy. The
AO initiated penalty proceedings
Term Loans Rs.27,95,18,563/-
sanctioned Under Technology
upgradation Fund (TUF) Scheme
iv) Insurance subsidy received under Rs.3,78,46,386/-
Central ... under
the above unit was not liable to tax.
* 5% interest subsidy TUFS by Government of India
TUF Scheme was introduced by the Government
allowing depreciation @ 50% on
machinery claimed to have been purchased under TUFS.
3. Whether on the facts and circumstances of the case ... claimed depreciation of Rs.63,13,459/- @
50% on machinery purchased under TUFS. The assessee contended that
depreciation @ 50% was claimed as the machinery
