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TMI Blog2013 (6) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... of multiplexes is in the nature of revenue receipt or capital receipt is the question raised in these appeals. According to the Revenue, in the light of the judgment of the apex court in the case of Sahney Steel and Press Works Ltd. v. CIT reported in [1997] 228 ITR 253 (SC), the entertainment duty subsidy received by the assessee must be held to be revenue receipt because, the subsidy is granted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsidy is paid is not relevant. The source is immaterial. The form of subsidy is immaterial. The main eligibility condition in the scheme with which we are concerned in this case is that the incentive must be utilized for repayment of loans taken by the assessee to set up new units or for substantial expansion of existing units. On this aspect there is no dispute. If the object of the subsidy schem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e average occupancy in cinema theatre has fallen considerably and hardly any new theatres have been started in the recent past. Public at large these days prefer to see movies at home. Keeping in view this scenario, a concept of complete family entertainment centre, more popularly known as 'multiplex theatre complex' has emerged. These multiplex theatre complexes offer various entertainment facili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt, 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 out of own funds or borrowed funds, the receipt of subsidy would be on capital account. In the light of the aforesaid objects of the scheme framed by the State Government, the decision of the Income-tax Appellate Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X
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