2001 (7) TMI 16

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..... the facts and in the circumstances of the case, the Appellate Tribunal is right in deleting the addition of rupees one lakh received by the assessee from the Andhra Pradesh Government as subsidy for production of films and thereby holding that the subsidy received would not be taxable in the hands of the recipient as income?" Admittedly, the assessee is a private limited company engaged in the .....

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..... to the case of CIT v. Udaya Pictures (P.) Ltd. [1997] 225 ITR 394 (Ker), and held that the subsidy was granted by the State Government for producing new regional films. It was held that the entitlement to the subsidy sprang from the business carried on by the assessee and the amount was received during the course of conduct of the business. What was received by the assessee was not a capital rece .....

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