Entertainment duty exemption for multiplex subsidy treated as capital receipt; appeals dismissed following precedent. State subsidy in the form of an entertainment duty exemption for newly established multiplex theatre complexes for three years, followed by payment of ...
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Entertainment duty exemption for multiplex subsidy treated as capital receipt; appeals dismissed following precedent.
State subsidy in the form of an entertainment duty exemption for newly established multiplex theatre complexes for three years, followed by payment of duty at 25% for two years, was characterised as a capital receipt rather than a revenue helping hand; this classification determined tax treatment and led to dismissal of the appeals by reference to the controlling precedent, with the operative effect that the exemption scheme does not qualify as revenue subsidy for the assessees and the related tax claims fail.
The Supreme Court of India, in a judgment by Mr. Rohinton Fali Nariman and Mr. L. Nageswara Rao JJ., dismissed the appeals based on a previous judgment dated 07.12.2017 in Commissioner of Income-Tax I, Kolhapur Vs. M/s. Chaphalkar Brothers Pune (Civil Appeal Nos. 6513-6514 of 2012 Etc. Etc.).
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