TaxTMI 
TaxTMI 
2017 (2) TMI 1491
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....e assessee has claimed entertainment tax as exempt in respect of its multiplexes at Vadodara, Mumbai, Brudwan, Jaipur Indore, Lucknow and Darjeeling aggregating to Rs. 10,69,89,058/-. The A.O. found that the same was treated as capital receipt not chargeable to tax. The A.O. further observed that in earlier assessment years i.e. A.Y. 2003-04 to A.Y. 2008-09. This receipt has been considered as a revenue receipt. The A.O. further observed that the assessee has succeeded before the ITAT for A.Y. 2003-04 to A.Y. 2005-06, though the revenue has preferred appeals before the Hon'ble High Court. Taking a leaf out of the previous history of the assessee, the A.O. made the addition of Rs. 10,69,89,058/-. 5. Assessee carried the matter before the ld. CIT(A) and reiterated its claim that the impugned receipt is a capital receipt. 6. After considering the facts and the submissions`, the ld. CIT(A) observed that his predecessor has decided similar issue from A.Y. 2003-04 to A.Y. 2009-10 in favour of the assessee except for the policy applicable to Multiplexes at Rajasthan in earlier years. The ld. CIT(A) further observed that the Tribunal has confirmed the decision of the ld. CIT(A) for asses....
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....) 20,616,897 Held to be a capital receipt not exigible to tax for Assessment Years 20O3-04 to Assessment years 2009- 10 by CIT(A) and the same confirmed by ITAT, Ahmedabad for AY 2003-04 to 2005-06 2 Nariman Point (Maharashtra) 33,578,000 Held to be capital receipt not exigible to tax for Assessment Years 2006-O7 to 2009-10 by CIT(A). The applicable policy covered in favour of the appellant by IT AT, Ahmedabad's Common Order for AY 20O3-04 to AY2OO5-06 3 Burdwan (West Bengal) 3,050,769 Held to be a capital receipt not exigible to tax for Assessment year 2009-10 by CIT(A). The applicable policy covered in favour of the appellant by IT AT, Ahmedabad's Common Order for AY 2003-04 to AY 2005-O6 4 Lucknow (Uttar Pradesh) 14,656,794 Held to be a capital receipt not exigible to tax for Assessment Years 2008-09 to 2009-10 by CIT(A) 5 Indore (Madhya Pradesh) 5,656,806 Held to be a capital receipt not exigible to tax for Assessment Years 2006-07 to 2009-10 Assessment Year by CIT(A) 6 Nagpur2 (Maharashtra) 11,372,664 First year of claim. However, same facts as in Pune and N....
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....ted said amount as its income. * The Commissioner (Appeals), however, accepted the plea of the assessee after re lying, inter alia, on the State Government's notification and deleted the entire addition by treating the entertainment subsidy as a capital receipt because said amount had been credited in the books of account of the assessee as a liability under the head "Capital Subsidy". * The Tribunal upheld the order of the Commissioner (Appeals). 13. And on appeal, the Hon'ble High Court held as under:- *In the instant case, it is more than apparent that the State Government proceeded to exempt entertainment tax for a period of 5 years payable by a "new" cinema hall constructed, subject to the condition that commercial exhibition of films in such cinema hall was required to be started by 31-3-2000. *In the scheme of the Rajasthan Entertainments and Advertisements Tax Act, 1957, where entertainment tax is determined and recoverable from the proprietor of the entertainment and is levied with reference to the number of admissions to the entertainment, when the State Government had exempted such proprietor of new cinema hall from payment of entertainment tax on the given ....
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....pital borrowed for acquisition of shares in a company would amount to earning exempt dividend income. Invoking the provisions of Section 14A of the Act read with Rule 8D, the A.O. computed the disallowance at Rs. 83,58,340/-. 17. Assessee carried the matter before the ld. CIT(A) but without any success. 18. Before us, the ld. counsel for the assessee vehemently stated that no disallowance can be made as the assessee has received no exempt income during the year under consideration. 19. We have carefully considered the orders of the authorities below. It is not in dispute that the assessee has not received any exempt income during the year under consideration. The disallowance has been made on finding of the fact that the assessee has made certain investments out of borrowed funds. In our considered opinion, since the assessee has not earned any exempt income, no disallowance u/s. 14A read with Rule 8D is called for. Our view is also fortified by the decision of the Hon'ble High Court of Gujarat in the case of Corrtech Energy Ltd. 372 ITR 97. Held "that the Tribunal had recorded the finding of fact that the assessee did not make any claim for exemption of any income from payment ....
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....ence between the market prices and the price at which the option is exercised by the employees is to be debited to the Profit and Loss Account as expenditure. As per the appellant ESOPs are issued and valued in terms of ESOP scheme framed as per the SEBI guidelines. The appellant has submitted that in view of above, ESOP liability of Rs. 16,21,904/- be allowed as a deductible expense as the recognition of ESOP expenditure is in accordance with the SEBI guidelines. The appellant has relied upon decision of various Hon'ble Courts including the decision of Hon'ble ITAT, Bangalore (Special Bench) in the case of Biocon Ltd. Vs DCIT, reported in [2013] 55 taxmann.com 335 (Bangalore). As per the appellant in this referred case the Hon'ble ITAT Special Bench, Bangalore has held that when a company undertakes to issue shares to its employees at a discounted premium on a future date, the primary object of this exercise is not to raise share capital but to earn profit by securing the consistent and concentrated efforts of its dedicated employees during the vesting period. Such discount is construed, both by the employees and company, as nothing but a part of package of remuneratio....