SOUTHERN ROADWAYS PVT LTD Vs. GOVERNMENT OF ANDHRA PRADESH
LAWS(APH)-1971-12-10
HIGH COURT OF ANDHRA PRADESH
Decided on December 30,1971

SOUTHERN ROADWAYS (P.) LTD Appellant
VERSUS
GOVERNMENT OF ANDHRA PRADESH PER ITS SECRETARY, HEALTH, HOUSING AND MUNICIPAL ADMINISTRATION, HYDERABAD Respondents

JUDGEMENT

- (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 Municipalities.;


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