Sponsorship Receipts Exempt from Entertainment Tax Under Delhi Act, Court Rules on Fashion Shows and Sporting Events.

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....The case involved a challenge to assessment orders regarding whether sponsorship receipts constitute "payment for admission to entertainment." The court examined if the pre-amended Section 2(m) of the Delhi Entertainment and Betting Tax Act covered sponsorship of fashion shows and sporting events for extending tax u/s 6. The court held that sponsorship receipts did not fall under the taxable event for entertainment tax as defined in Section 6. The retrospective introduction of Explanation 2 was deemed burdensome and onerous, not clarificatory. The court concluded that the Act lacked a specific charging provision for taxing sponsorships and did not provide a mechanism for assessing and collecting tax on sponsorships. Therefore, the petition was allowed by the High Court.....