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TMI Blog2020 (10) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) fails and it is set aside. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... /2018 and submitted that the Assessing Officer allowed the claim of assessee for A.Y. 2013-14 as subsidy received as capital in nature. Against which the Pr. CIT u/s. 263 of the Act held the same as erroneous and prejudicial to the interest of revenue. This Tribunal quashed the order of Pr. CIT by holding the Octroi refund as claimed by the assessee as capital in nature is correct. Further, he referred to the decision of Hon‟ble High Court of Bombay in the case of CIT Vs. Chaphalkar Brothers reported in 351 ITR 309 (Bom) and submitted that the Hon‟ble High Court of Bombay held the form of subsidy is immaterial, the said subsidy is to be treated on capital account is the same is granted for setting up a new unit to expand the exi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form of Octroi refund as capital in nature u/s. 143(3) proceedings. The Pr. CIT exercising his jurisdiction u/s. 263 of the Act held the same as erroneous and prejudicial to the interest of revenue by holding the said Octroi refund subsidy is revenue in nature. As discussed above this Tribunal quashed the order passed u/s. 263 of the Act on the merits this Tribunal held Octroi refund is capital in nature not chargeable to tax vide para 4.2. 7. The Hon‟ble High Court of Bombay in the case of Chaphalkar Brothers (supra) held that if the object of the assistance under the subsidy schme was to enable the assessee to set up a new unit or to expand the existing unit then the receipt should be treated as capital account. We note that the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncentives qua entertainment duty. It was also added that government with a view to commemorate the birth centenary of late Shri V. Shantaram decided to grant concession in entertainment duty to Multiplex Theatre Complexes to promote construction of new cinema houses in the State. The aforesaid object is clear and unequivocal. The object of the grant of the subsidy was in order that persons come forward to construct Multiplex Theatre Complexes, the idea being that exemption from entertainment duty for a period of three years and partial remission for a period of two years should go towards helping the industry to set up such highly capital intensive entertainment centers. This being the case, it is difficult to accept Mr. Narasimha's arg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an order dated 19.04.2016, this Court stated that the issue raised in those appeals was covered, inter alia, by the judgment in Ponni Sugars, and the appeals were, therefore, dismissed. 25. We have no hesitation in holding that the finding of the Jammu and Kashmir High Court on the facts of the incentive subsidy contained in that case is absolutely correct. In that once the object of the subsidy was to industrialize the State and to generate employment in the State, the fact that the subsidy took a particular form and the fact that it was granted only after commencement of production would make no difference. 26. In coming to the West Bengal cases, we find that the West Bengal Finance Act, 2003 which amended the Bengal Amusements Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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