SOUTHERN ROADWAYS PVT LTD Vs. GOVERNMENT OF ANDHRA PRADESH
HIGH COURT OF ANDHRA PRADESH
SOUTHERN ROADWAYS (P.) LTD
GOVERNMENT OF ANDHRA PRADESH PER ITS SECRETARY, HEALTH, HOUSING AND MUNICIPAL ADMINISTRATION, HYDERABAD
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(1.) The petitioner is a transport
organisation which has got a wide net
work or branches. The second respondent is the Municipal Council of Tade-palligudam
and it has levied profession-
tax payable by the petitioner-company.
The levy is attacked on the ground that
it is not in consonance with law.
(2.) Under section 96 of the Act regulating
the levy, profession-tax might be levied on
every company transacting business in
the Municipality for not less than one
hundred and twenty days in the aggregate
in any year. The substantive power to
levy tax is indisputable. Nor does the
Counsel for the petitioner question the
liability to pay the profession-tax.
(3.) The question for determination is:
on what basis is the tax to be computed?
In regard to the companies transacting
business in more than one Municipality,
provision has been made in the rules as
to the method of levy. Section 96 may
be read in this connection. It provides
inter alia that where a company or person
transacts any business in any 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 purposes of levying profession-tax
be deemed to be the income as specified in
clauses (a) and (b) of the rule. Sub-rule 2
deals with cases where a company or
person transacts business in several
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