Multiplex Infrastructure Subsidy Classified as Capital Receipt, Providing Tax Advantage for Entertainment Sector Development

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....HC determined that Entertainment Tax Subsidy (ETS) received by the assessee from state governments constitutes a capital receipt, not revenue. The subsidy was aimed at encouraging multiplex theatre development in capital-intensive sectors. The court's reasoning aligned with prior SC precedent in Chaphalkar Brothers Pune, which established similar principles regarding subsidies. The ruling effectively resolved the dispute by classifying the ETS as a capital receipt, thereby providing favorable treatment for the assessee's tax implications related to subsidies received for multiplex infrastructure development across multiple states.....