Law:

Section:

Section 4 of the Income-tax Act, 1961 - Income - Chargeable as - Assessment year 1983-84 - Whether sum received by assessee-company, engaged in production of films, as subsidy for production of film from Government, would be taxable as income - Held, no CASES REFERRED TO CIT v. Chitra Kalpa [1989] 40 Taxman 413 / 177 ITR 540 (AP) [para 3], Sahney Steel & Press Works Ltd. v. CIT [1997] 228 ITR 253 / 94 Taxman 368 (SC) [para 3] and CIT v. Udaya Pictures (P.) Ltd. [1997] 225 ITR 294/[1996] 89 Taxman 56 (Ker.) [Para 3]. Mrs. Chitra Venkataraman for the Applicant. P.P.S. Janardhana Raja for the Respondent. JUDGMENT K. Gnanaprakasam J. - At the instance of the Revenue, the following question has been referred to us : "Whether, on 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?" 2. Admittedly, the assessee is a private limited company engaged in the production of films. For the assessment year 1983-84, the assessee received a sum of Rs. 1,00,000 from the Government of Andhra Pradesh representing subsidy for the production of a feature film. As the said amount was brought to tax as the assessee's income, this question has been referred to us. 3. Learned Counsel for the Revenue has fairly submitted that a similar question had arisen before the Andhra Pradesh High Court in the case of CIT v. Chitra Kalpa [1989] 177 ITR 540 1, wherein it was held that subsidy was for making a film and…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492