Entertainment Tax Officer,Madhapur ... vs M/S Hi Tech Theatre, ...

The Supreme Court interpreted Sub-section (6) of Section (5) of the Andhra Pradesh Entertainments Tax Act, 1939, clarifying that the authority's power to vary the amount of tax payable is limited to the duration of the option exercised by the cinema theatre owner. The Court held that the prescribed authority could not alter the tax amount after the option period had expired, thereby upholding the decision of the Andhra Pradesh High Court in favor of the respondent. The judgment emphasized the necessity of adhering to the statutory framework established by the Act.