COMMISSIONER OF INCOME TAX-I, KOLHAPUR vs M/S CHAPHALKAR BROTHERS PUNE

The Supreme Court examined the validity of the subsidy scheme under the Bombay Entertainments Duty Act, 1923, which provided for an exemption of entertainment duty for Multiplex Theatre Complexes for three years, followed by a 25% duty for the next two years. The Court upheld the amendments made to the Act, emphasizing the need for government support to promote cinema amidst declining occupancy rates due to competition from cable television and home viewing. The judgment confirmed that the scheme was a legitimate exercise of legislative power aimed at fostering cultural infrastructure in the state.