DCIT CENTRAL CIRCLE-31 DELHI, DELHI vs. RSWM LTD., BHILWARA

ITA 909/JODH/2024Status: DisposedITAT Jodhpur29 September 2025Bench: IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE DR. MITHA LAL MEENA, HON'BLE ACCOUNTANT MEMBER AND ANIKESH BANERJEE, HON'BLE (Judicial Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the interest subsidy received under TUFS and RIPS was for technological upgradation and promoting capacity expansion, thus constituting a capital receipt. The CIT(A)'s decision was upheld based on various High Court and Supreme Court judgments.

What were the facts?

The assessee received interest subsidy under the Technology Upgradation Fund Scheme (TUFS) and Rajasthan Investment Promotion Scheme (RIPS). Initially treated as revenue, the assessee later claimed it as a capital receipt. The CIT(A) allowed this claim, treating the subsidy as capital in nature.

What were the issues?

Whether interest subsidy received under TUFS and RIPS is a capital or revenue receipt, and if it can be claimed as a capital receipt even if not initially declared as such.

Which sections of the Income-tax Act were involved?

Section 139(5),Section 115JB

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IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE DR. MITHA LAL MEENA, HON'BLE ACCOUNTANT MEMBER AND ANIKESH BANERJEE, HON'BLE JUDICIAL MEMBER ITA No. 906 to 909/Jodh/2024 (Assessment Year 2009-10) (Assessment Year 2011-12 to 2013-14) DCIT, Central Circle-31, Delhi. Vs. RSWM Ltd. P.B. No. 28 Kharigarm, Gulabpura, Bhilwara - 311001. PANNo.AAACR9700M Assessee by Shri S.S. Nagar, C.A.

Revenue by Shri M.K. Jain, CIT (DR)

Date of Hearing 21.08.2025.

Date of Pronouncement 29.09.2025. DR. MITHA LAL MEENA, A.M.: ORDER The Captioned appeals are filed by the Revenue against the separate order passed by the Ld. Commissioner of Income Tax, (Appeals) Ajmer, [hereinafter referred to as CIT(A))] even dated 27.11.2017, in respect with Assessment Years 2009-10 and Assessment Year 2011-12 to 2013-14. 2. The revenue has raised common issues in the grounds of the above four appeals on identical facts except variation in quantum of addition and therefore all these four appeals were heard together and adjudicated by this consolidated order for the sake of brevity. The appeal in ITA No.906/Jodh/2024 with respect to assessment year 2009-10 is taken as lead case for discussion of the facts

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