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Nirmala Sahu vs State Of Chhattisgarh 40 Wps/432/2017 ... on 18 May, 2018

10. TUF subsidy is granted in order to encourage the upgradation of technology and size. So as to meet the global challenges, the Ministry of Textiles, Government of India had launched the Technology Upgradation Fund ('TUF') Scheme which is to upgrade the technology and hence considering the purpose test, the same needs to be treated as capital in nature. The subsidy is g ranted to improve technology upgradation in the context of liberalization of the industry and trade policy in order to improve competitiveness and long term viability . The benefits under the TUF are available for modernization and expansion of existing units and also for setting up of new units in various segments of tex tiles and jute industry. Taking into consideration, the decision of Hon'ble Hig h Court of Punjab & Haryana in the case of C IT Vs. Sham Lal Bansal 200 Taxmann 14, judgment of Hon'ble Jammu & Kashmir High Court in the case Balaji Alloy s Vs. CIT and taking into consideration the judgments of Hon'ble Apex Court in the case of Ponni Sugars & Chemicals Ltd. Vs. C IT 229 ITR 383 and Sahney Steel and Press 11 ITA No.5929/Del/2019 Cheslind TextilesLtd.
Chattisgarh High Court Cites 5 - Cited by 4774 - M M Shrivastava - Full Document

The Management Of Siruguppa Sugars And ... vs C.S. Mohan And Anr. on 28 May, 2002

10. TUF subsidy is granted in order to encourage the upgradation of technology and size. So as to meet the global challenges, the Ministry of Textiles, Government of India had launched the Technology Upgradation Fund ('TUF') Scheme which is to upgrade the technology and hence considering the purpose test, the same needs to be treated as capital in nature. The subsidy is g ranted to improve technology upgradation in the context of liberalization of the industry and trade policy in order to improve competitiveness and long term viability . The benefits under the TUF are available for modernization and expansion of existing units and also for setting up of new units in various segments of tex tiles and jute industry. Taking into consideration, the decision of Hon'ble Hig h Court of Punjab & Haryana in the case of C IT Vs. Sham Lal Bansal 200 Taxmann 14, judgment of Hon'ble Jammu & Kashmir High Court in the case Balaji Alloy s Vs. CIT and taking into consideration the judgments of Hon'ble Apex Court in the case of Ponni Sugars & Chemicals Ltd. Vs. C IT 229 ITR 383 and Sahney Steel and Press 11 ITA No.5929/Del/2019 Cheslind TextilesLtd.
Karnataka High Court Cites 10 - Cited by 2 - S R Bannurmath - Full Document

Transmission Corpn. Of Ap Ltd. vs Asstt. Cit, Circle (2) on 24 February, 2005

Thus it is clear t hat the C IT (Appeals ) has f ollowed the decisi on of the Trib unal i n cas e of Divi's Labor atories Pvt. Ltd. (supra). The lear ned Departmental R epresentativ e has not brought to our notice any contrary decision/pr ecedenc e. In view of the abov e facts and circums tanc es of the ca se where the c ommission payment i n question is not tr eated by the Assessi ng Of ficer as ITS or royalty t hen i n the absence of PE, it is not chargeabl e to ta x in India. The learned Depa rtmental R epres entative has relied upon the Explanati on 2 of S ecti on 195(1 ) of t he Ac t. However, we are of the vi ew that this Explanation 2 to S ection 195(1) woul d not obliterate the prerequisite c ondition of S ecti on 1 95(1) that "s um chargeable under the provisions of the Act ". We f urther note that an identical issue has been considered by t he co-or dinate benc h of this Tribunal in the case of Za nav H ome C ollecti on (supra) in paras 3 8 t o 41 as under:
Income Tax Appellate Tribunal - Hyderabad Cites 28 - Cited by 87 - Full Document
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