2022 (10) TMI 124

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the appeals are identical except variation in quantum. 3. The first common issue arising in these appeals relates to taxability of entertainment tax subsidy received by the assessee. 4. Briefly, the facts relating to this issue are, the assessee is a resident corporate entity engaged in the business of operation and management of multiplexes. In the relevant financial years, corresponding to the respective assessment years, assessee had received entertainment tax subsidy under a scheme formulated by the Government of Maharashtra. The object behind formulating such scheme is to encourage capital investment in multiplex/theater complex. As per the scheme, exemption from entertainment tax is allowed to the multiplexes for certain initial....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eceived by multiplexes/cinema hall owners under the very same Scheme the Hon'ble Apex Court has held that the entertainment tax subsidy received is in the nature of capital receipt. In fact, in assessee's own case in assessment years 2008-09 and 2009- 10, Hon'ble Bombay High Court while dismissing the appeals filed by the Revenue has upheld the decision of the Tribunal holding that the entertainment tax subsidy received by the assessee is in the nature of capital receipts. Further, in case of CIT vs. Bougainvillea Multiplex Entertainment Centre (P) Ltd. (55 taxmann.com 26), the Hon'ble Delhi High Court has expressed identical view. 10. Undisputedly, learned Commissioner (Appeals) while deciding the issue has followed the ratio laid d....