COMMISSIONER QUILON MUNICIPALITY QUILON Vs. HARRISONS AND CROSFIELDS LTD
LAWS(KER)-1963-8-22
HIGH COURT OF KERALA
Decided on August 26,1963

COMMISSIONER, QUILON MUNICIPALITY, QUILON Appellant
VERSUS
HARRISONS AND CROSFIELDS LTD., QUILON Respondents


Referred Judgements :-

HARRISONS AND CROSSFIELD LIMITED V. COMMISSIONER,QUILON MUNICIPALITY [REFERRED TO]
TADAO BAHUJI VS. MUNICIPAL COMMITTEE KHANDWA [REFERRED TO]
HARRISONS AND CROSSFIELD VS. COMMISSIONER QUILON MUNICIPALITY [REFERRED TO]



Cited Judgements :-

GOPIBAI MANAKLAL VS. MOHAMMED HUSSAIN [LAWS(MPH)-1992-2-9] [REFERRED TO]
TRICHUR WHOLESALE COOPERATIVE CONSUMERS STORES LTD VS. COMMISSIONER, TRICHUR MUNICIPALITY [LAWS(KER)-1973-11-41] [REFERRED TO]


JUDGEMENT

- (1.)THIS is an appeal from the decision of Vai-dialingam, "j. , in O. P. No. 981 of 1960. That petition which has been allowed was by the respondent before us, messrs. Harrisons" and Crossfield Limited, Quilon. The appellant -- the 1st respondent in O. P. No. 981 of 1960 -- is the Commissioner of the Quilon municipality.
(2.)THE controversy relates to the assessment of the respondent to profession tax for the two half years of the financial year 1958-59. The assessment was on the basis of the proviso to Rule 18 (2) - of the Taxation Rules in Schedule II to the travancore District Municipalities Act, 1116 (M. E. }. The assessment order is Ext. B and the resolution of the Municipal Council dismissing the respondent's appeal and confirming the assessment is Ext. F dated the 15th March, 1960.
(3.)RULE 18 (1) of the Taxation Rules reads as follows :
"where a company of person transacts business in any half-year exclusively in the area of a single municipality, the income of such company or person from the transaction of such business shall, for the purpose of levying profession tax under this Act during the half-year, be deemed to be -

(a) where income-tax is assessed on such company or person under the Travancore Incometax Act for the year, comprising the half-year, one-half of the amount at which the profits and gains of such business are computed under Section 8 of the travancore Income-tax Act for the purpose of assessing the income-tax; and

(b) where the amount of the said profits and gains is not ascertainable or where such company or person is not assessed to income-tax, such percentage as our Government may prescribe, of the turnover of the business transacted in the area of the municipality during the half-year or where this is also unascertainable during the corresponding half-year of the previous year. ''; and Rule 18 (2) :

"where a company or person transacts business partly in the area of a municipality and partly outside such area, the income of such company or person from the transaction of busi ness in the area of the municipality shall, for the purpose of levying profession tax under this Act, be deemed to be the percentage prescribed under Clause (b) of Sub-rule (1) of the turnover of the business transacted. In such area daring the half year or the corresponding half-year of the previous year, as the case may be. Provided that in the case of a company or person assessable to income-tax, the total profits earned by the company or person as disclosed by the income-tax assessment for the whole State for the year comprising the half-year for which the profession tax is to be levied, shall be divided in the proportion of the turnover of the business of the company of person in the municipality and outside for purposes: of assessment to profession tax. ''
The proviso to Rule 18 (2) was not originally part of that rule. It was added by a notification dated the 26th August 1947 in exercise of the powers conferred by section 325 of the Travan-core District Municipalities Act, 1116 (M. E. ).
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