Srivastava, J. - (1.) This is a petition under Article 226 of the Constitution praying for the issue of a writ in the nature of certiorari or any other suitable writ, order or direction quashing the order dated the 5th September, 1955 and all proceedings relating to the assessment of the applicant for the years 1952-53, 1953-54 and 1954-55 in respect of circumstances and property tax.
(2.) The applicant is an incorporated company having a branch at Jaswantnagar in the district of Etawah. Its head office is located at Delhi. It carries on the business of supplying electricity at several places including Jaswantnagar. The town of Jaswantnagar is situate within the jurisdiction of the Town Area Committee of that place constituted under the U. P. Town Areas Act (Act No. II of 1914). Holding that the applicant was liable to pay circumstances and property tax, the Town Area Committee of Jaswantnagar has assessed the applicant to a tax of Rs. 250 per year for the three years 1952-53, 1953-54 and 1954-55. In these years the earned gross income of the applicant has been held to be Rs. 30,630-11-0, Rs. 30, III-5-3 and Rs. 29,993-9-3 respectively. The applicant objected to the assessment on the ground that during the years in question it had no income and had on the contrary suffered losses. It had, therefore, no taxable income in those years and could not consequently be assessed to any circumstances and property tax. The objection was not upheld by the Town Area Committee. An appeal was filed before the District Magistrate and was decided by the Sub-Divisional Magistrate of Etawah to whom it was transferred. He too rejected the appeal. The applicant has, therefore, come up to this Court with the contention that its assessment to circumstances and property tax, is illegal and without jurisdiction.
(3.) The main argument put forward in support of the contention is that the power to tax income vests' only in the Parliament. The rules framed by the State Government authorising Town Areas to tax a person on his gross income, must, therefore, be held to be ultra vires and the assessment of the applicant on the basis of gross income is consequently illegal.;