Subsidy given by State Governments on Account of Development of Multiplexes in State is a Capital Receipt: ITAT grants relief to PVR [Read Order]
![Subsidy given by State Governments on Account of Development of Multiplexes in State is a Capital Receipt: ITAT grants relief to PVR [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/12/state-government-Multiplexes-capital-reciept-Subsidy-itat-relief-pvr-taxscan.jpg "Subsidy given by State Governments on Account of Development of Multiplexes in State is a Capital Receipt: ITAT grants relief to PVR [Read Order]")
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) granted relief to PVR and held that the subsidy given by the state government on account of the development of multiplexes in the state is a capital receipt. The counsel for the assessee stated that the issue is no more resintegra as it has been decided by this Tribunal in favour of the assessee and against the revenue in...
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) granted relief to PVR and held that the subsidy given by the state government on account of the development of multiplexes in the state is a capital receipt.
The counsel for the assessee stated that the issue is no more resintegra as it has been decided by this Tribunal in favour of the assessee and against the revenue in A.Y. 2006-07 in ITA No.1897/Del/2010.
The Two-member bench comprising of N.K. Billaiya (Accountant member) and Astha Chandra (Judicial member) by referring to the direct judgments of the Bombay High Court in M/s Chapalkar Brothers and that of the Supreme Court judgment in the case of Ponni Sugars & Chemicals Ltd., which has approved many such judgments cited in the body of the order, held that the subsidy received by the assessee was capital in nature. Thus, the appeal of the assessee was allowed.
To Read the full text of the Order CLICK HERE
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