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2015 (2) TMI 21 - HC - Income TaxEntertainment tax subsidy - whether a capital receipt? - Held that:- Any subsidy granted for setting up a business would constitute a capital receipt in the hands of the recipient, in the case of subsidy granted to the assessee co. pursuant to a scheme, the purpose of which was to encourage setting up of multiplexes in the state of UP and not augmentation of profit of the multiplex, the receipt by the assessee co. constitute a capital receipt. ITAT in the impugned orders has taken a correct view of law on the basis of available facts to conclude that the assessee is entitled, in terms of the UP Scheme, to treat the amounts collected towards entertainment tax as capital. The question of law raised in these appeals is, thus, answered in the negative against the revenue/appellant. - Decided in favour of assessee
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