TMI Blog2013 (6) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... n, receipt of subsidy would be on capital account. The fact that the subsidy was not meant for repaying the loan taken for construction of multiplexes cannot be a ground to hold that subsidy receipt was on revenue account, because, if the object of the scheme was to promote cinema houses by constructing multiplex theatres, then irrespective of the fact that the multiplexes have been constructed ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of business and after the entertain duty is collected by the assessee. The apex court in the case of CIT v. Ponni Sugars and Chemicals Ltd. reported in [2008] 306 ITR 392 (SC) has on consideration of its decision in the case of Sahney Steel [1997] 228 ITR 253 (SC) held thus (page 400) : "The importance of the judgment of this court in Sahney Steel's case lies in the fact that it has discussed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee to run the business more profitably then the receipt is on revenue account. On the other hand, if the object of the assistance under the subsidy scheme was to enable the assessee to set up a new unit or to expand the existing unit then the receipt of the subsidy was on capital account." Thus, the purposes for which the subsidy was given is the relevant factor and if the object of subsidy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e family under single roof. However, these complexes are highly capital intensive, their gestation period is also quite longer, and, therefore, need Government support and incentive in entertainment duty. 2. The Government has, therefore, with a view to commemorate birth centenary of Chitrapati late Shri V. Shantaram, decided to grant concession in entertainment duty to multiplex theatre complex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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