https://www.taxtmi.com/caselaws?id=352547 The character of a subsidy depends on its dominant purpose: where the object is to promote the setting up or expansion of a capital project, the receipt is capital in nature; where it is intended to support day-to-day business operations, it is revenue. Applying that test, the SC held that exemption and partial remission of entertainment duty for multiplex theatre complexes were designed to encourage construction of new capital-intensive multiplexes, and the timing, source, or form of the concession was not decisive. The subsidy was therefore treated as a capital receipt and not taxable as revenue. The same conclusion applied to the West Bengal scheme. en-us Thu, 07 Dec 2017 00:00:00 +0530 Mon, 15 Sep 2025 13:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=352547 The character of a subsidy depends on its dominant purpose: where the object is to promote the setting up or expansion of a capital project, the receipt is capital in nature; where it is intended to support day-to-day business operations, it is revenue. Applying that test, the SC held that exemption and partial remission of entertainment duty for multiplex theatre complexes were designed to encourage construction of new capital-intensive multiplexes, and the timing, source, or form of the concession was not decisive. The subsidy was therefore treated as a capital receipt and not taxable as revenue. The same conclusion applied to the West Bengal scheme. Case-Laws Income Tax Thu, 07 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=352547