PICTURE PALACE NIZAMABAD Vs. ENTERTAINMENT TAX OFFICER NIZAMABAD

JUDGEMENT

(1.) This Tax Revision Case is filed under Section 9-D of the Andhra Pradesh Entertainments Tax Act, 1939 (Act No. 10 of 1939), for short "the Act". The Proprietor of the theatre is the petitioner. This revision is directed against the order of the Entertainments Tax Appellate Deputy Commissioner, Company Division, Hyderabad, in AppealNo.A/291/86-87, dated June 29,1987.

(2.) The petitioner is running a cinema theatre in the name and style of "Picture Palace" at Nizamabad. In the assessment year 1986-87, during the period commencing from April 1,1986 and ending with December 31, 1986, the Entertainments Tax Officer levied penal interest under Rule 20-A of the Andhra Pradesh Entertainments Tax Rules, 1939, for short "the Rules", on the ground that the petitioner made belated payment of tax. Interest of Rs.4,624/- was levied by order of the Entertainments Tax Officer in Rc.No.E/Permit 2/87-88, dated April 25, 1987. The petitioner challenged the correctness of that order before the Appellate Deputy Commissioner who dismissed the appeal of the petitioner by his order dated June 29, 1987. It is that order which is the subject matter of revision in this case.

(3.) Mr. A. V.S. Ramakrishanaiah, the learned counsel for the petitioner, contends that unless the tax becomes due the Entertainments Tax Officer cannot levy interest under Rule 20-A of the Rules. He has invited our attention to Rules 15 and 16 of the Rules to contend that it is only after the order of assessment is passed by the Entertainments Tax Officer that the question of tax becoming due would arise giving rise to liability to payment of interest under Rule 20-A. He further contends that though there was a delay of a day or two during the above said period, the authority levied interest for the whole month which is illegal and contrary to the provisions of Rule 20-A.