M/S. NITIN SPINNERS LTD.,BHILWARA vs. DY. CIT,, BHILWARA

ITA 233/JODH/2016Status: DisposedITAT Jodhpur30 June 2026AY 2012-1312 pages
AI SummaryAllowed

What were the facts?

The assessee received interest subsidies and duty-free scrips under various government schemes. The assessee initially offered these amounts to tax but later claimed them as capital receipts, not taxable income. The Tribunal had previously omitted to adjudicate this additional ground.

What did the Tribunal hold?

The Tribunal held that the interest subsidies and duty-free scrips received under the Technology Upgradation Fund, Focus Market Scheme, and Focus Product Scheme are capital receipts. These amounts are not to be treated as income and should be excluded from the assessee's total income.

What were the issues?

Whether interest subsidies and duty-free scrips received under government schemes constitute capital receipts or revenue receipts for tax purposes.

Which sections of the Income-tax Act were involved?

Section 2(24),Section 28

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

For Appellant: Shri P.C. Parwal, CA (Virtual)
For Respondent: Shri Arvind Kumar Gehlot, DR (Virtual)

DR. MITHA LAL MEENA, A.M.: This is recalled matter vide tribunal order dated 30.05.2025 allowing the Misc. application of the assessee in ITA no. 233/Jodh/2016 for the assessment year consideration, since the assessee’s appeal was earlier disposed of by the Tribunal, wherein, the Tribunal has omitted to adjudicate the additional ground of appeal, although admitted as additional legal ground raised by the appellant as under:-

2 Under the facts and circumstances of the case, the interest subsidies received under Technology Upgradation Fund (TUF) of Rs.8,45,67,241/-, Duty Free Scrips of Rs.2,21,02,005/- towards the Focus Market Scheme (FMS) and Rs.18,37,661/- towards the Focus Product Scheme (FPS) under the Foreign Trade Policy

The order continues below.

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