Subsidy by State Government for development of new Multiplexes is capital in nature

PVR Ltd. Vs ACIT (ITAT Delhi)

ITAT Delhi held that incentive / subsidy given by state Governments on account of development of new Multiplexes in the state is capital receipt.

Facts- The issue involved here is whether Entertainment tax collected and retained by assessee as incentive / subsidy given by state Governments on account of development of new Multiplexes in the state is capital or revenue receipt.

Conclusion- Hon’ble Bombay High Court

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