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The CIT(A) heard the assessee on the issue and allowed the assessee’s claim of treating the interest reimbursement under TUF Scheme as capital in nature. That further the learned CIT(A) held that the assessee would not be entitled for interest on the refund of tax if any on account of allowance of its aforesaid claim.

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Section 4 of the Income Tax Act, 1961 - Income - Capital or revenue receipt — Interest reimbursement under Technology Upgradation Scheme is Capital receipt - Vardhman Textiles Ltd. vs. Deputy Commissioner of income tax [2019] 202 TTJ (Chandigarh) 750

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