Commnr. Of Income Tax, Madras vs M/S. Ponni Sugars & Chemicals Ltd on 16 September, 2008
15. We have given thoughtful consideration to the orders of the
authorities below. We have also the benefit of going through the
objectives, financial and operational parameters and implementation
mechanism for TUF Scheme in respect of interest subsidy. We find
that under the said Scheme, Government recognised that technology
upgradation in the textile industry would result in capacity expansion
and modernisation which would have direct impact on employment
generation, exports and globalisation of textile trade. In order to
achieve such objects, TUF Scheme was introduced by the Government
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to provide subsidy on loan taken for technological upgradation by the
units in the textile industry. We are, therefore, of the considered
view that the purpose of the Scheme satisfies the test laid down by the
Hon'ble Supreme Court in the case of Ponni Sugars [supra].