D. Falshaw, J. - (1.) THIS writ petition under Article 226 of the Constitution which has been referred to a larger Bench by my learned brother Harbans Singh raises the question of the interpretation of Article 276(2) of the Constitution which reads: The total amount payable in respect of any one person to the State or to any one municipality, district board, local board or other local authority in the State by way of taxes or professions trades, callings and employments shall not exceed two hundred and fifty rupees per annum. The petition was filed in July 1960 by Shrimati Aruna Rani who is a resident of Amritsar and also one of two partners in the registered partnership firm called Ashok Textile and Twisting Mills of Verka, which is in the district of Amritsar and was at the time when the petition was instituted within the jurisdiction of the Amritsar District Board. Section 30 of the Punjab District Boards -Act of 1883 empowers a District Board with the previous sanction of the State Government to impose any Tax which the State Legislature has power to impose in the State under the Constitution. By a notification dated the 1st of August 1955 issued under this section the District Board of Amritsar was empowered to impose a tax at the rates given. in the schedule on every person carrying on any trade profession, calling or employment in the area subject to the authority of the Board for not less than 120 days in the aggregate during a financial year, with the proviso that the tax was apt to be leviable on co -operative societies or persons mainly dependent on agriculture for their livelihood or with an income less than Rs. 400/ -p.a.
(2.) THE tax is fixed at Rs. 3/ - p.a. in respect of persons following some rather humble occupations listed in the schedule and a graded scale of taxation was made applicable to persons carrying on any trade, profession, calling or employment rising up to Rs. 200/ - on persons earning more than Rs. 10,000/ -. Under this notification a demand was served by the District Board on the firm M/s. Ashok Textile and Twisting Mills for professional tax for 1958 -60 After some further proceedings the demand was made for Rs. 200/ - for these years.
(3.) IN 1956 the Punjab Professions, Trades Callings and Employment Taxation Act, VII of 1956, came into existence by which the Stats imposed a similar tax on persons carrying on professions or businesses or employed in the State. The liability to pay the tax imposed was fixed from January 1960 and the tax was again graded, being leviable on incomes of Rs. 6,000/ - p.a. or more and with a maximum tax of Rs. 250/ -. The Petitioner as an individual was called on to pay the tax under this Act and she paid Rs. 250/ - for the current financial year on the 16th of February 1960.;