AO treated entertainment subsidy granted by State of UP as revenue receipt holding the same to be for the purpose of helping multiplexes to run profitably and the same was upheld by CIT(A). On appeal, Tribunal noted that the assessee’s object to construct Multiplex Theatre Complexes was in line with the object of grant of subsidy which was for promotion of construction of multiplexes. Further, the collection was in form of an entertainment duty via sale of tickets for a limited period but its utilisation was predetermined and granted with an assurance to cover up cost of construction. Therefore, it was not attributed in any manner towards supplementing of day-to-day expenditure or in furtherance of profits and hence could not be said to be in character of revenue receipt. Thereby relying on the case of Chaphalker Brother, the Tribunal dismissed revenue’s appeal. ( AY. 2009-10 , 2010-11, 2008 -09)