https://www.taxtmi.com/caselaws?id=394001 The character of a subsidy depends on its purpose: if the scheme is intended to promote construction or setting up of a business facility, the subsidy is capital in nature; if it supports business operations, it is revenue. Applying that purpose test, the subsidy for construction of cinema halls was linked to establishing new theatres and was therefore a capital subsidy, not taxable as revenue receipt. The Tribunal had stated the correct principle but reached a contrary conclusion without adequate reasoning, so the HC set aside its order. en-us Wed, 24 Jul 2019 00:00:00 +0530 Fri, 27 Mar 2020 11:12:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=394001 The character of a subsidy depends on its purpose: if the scheme is intended to promote construction or setting up of a business facility, the subsidy is capital in nature; if it supports business operations, it is revenue. Applying that purpose test, the subsidy for construction of cinema halls was linked to establishing new theatres and was therefore a capital subsidy, not taxable as revenue receipt. The Tribunal had stated the correct principle but reached a contrary conclusion without adequate reasoning, so the HC set aside its order. Case-Laws Income Tax Wed, 24 Jul 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=394001