https://www.taxtmi.com/caselaws?id=276227 A tax remission granted under a State notification for a newly constructed cinema hall was held to be a capital subsidy, because the purpose of the scheme was to encourage construction and commencement of a new unit, not to supplement trading receipts. The character of the assistance depended on the object of the scheme under the purpose test, so its form as an exemption from entertainment tax and the fact that patrons paid the tax did not alter its capital nature. The receipt was therefore not taxable as revenue, and the addition was deleted. en-us Tue, 04 Mar 2014 00:00:00 +0530 Fri, 02 Nov 2018 13:48:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276227 A tax remission granted under a State notification for a newly constructed cinema hall was held to be a capital subsidy, because the purpose of the scheme was to encourage construction and commencement of a new unit, not to supplement trading receipts. The character of the assistance depended on the object of the scheme under the purpose test, so its form as an exemption from entertainment tax and the fact that patrons paid the tax did not alter its capital nature. The receipt was therefore not taxable as revenue, and the addition was deleted. Case-Laws Income Tax Tue, 04 Mar 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276227