In a recent case, the Delhi High Court held that the entertainment tax is leviable on the payment received as admission fee in the form of tickets for fashion shows, theatre Shows, and movies.
Indian Trade Promotion Organisation, the respondent was an authority organizing Trade Fairs in the area commonly known as Pragati Maidan, New Delhi, and also received charges admission fees in the form of tickets to allow people to visit fairs and also levy separate fees for other events such as Fashion Shows, Theatre Shows and Movies conducted within the same complex by individual organizations.
The writ petition involves challenging the decision made by the Finance Commissioner under Section 15(4) of the Delhi Entertainment and Betting Tax Act, 1962 for setting aside the imposition/levy of entertainment tax upon the respondent.
Satyakam, the counsel for the petitioner contended that the decision was unsustainable because of the plenary powers of the assessing authority under Section 15 of the Delhi Entertainment and Betting Tax Act.
Sahu, the counsel for the respondent contended that section 2(a) of the Delhi Entertainment and Betting Tax Act was inapplicable since there was no question of entertainment when the people visited Pragati Maidan Complex, and the requirement of payment of admission fee by way of tickets was done to control the crowd.
Also submitted that the entry to the Pragati Maidan Complex regulated by the respondent was a business to business facilities and does not provide any entertainment.
The Bench observed that in the case of Hotel Rajdoot Pvt. Ltd, the court held that Section 2(3) of the U.P Entertainment and Betting Tax Act,1937 defined the word “entertainment” to include any exhibition, performance, amusement, game, or sport to which persons are admitted for payment.
The Entertainment tax was leviable on the coverage/fixed entry charges to access the discotheque and the assessee may also be imposed with a levy of entertainment tax wherever people are allowed free of charge inside the complex under Section 14 of the Delhi Entertainment and Betting Tax Act. The two-member bench comprising Yashwant Varma, J, and Dharmesh Sharma, J held that the respondent is liable to pay entertainment tax for the charges received in the form of tickets of movies and fashion shows for the assessment years 1998 to 1999 while allowing the writ petition
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