TaxTMI 
TaxTMI 
1968 (1) TMI 52
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....dividual and carries on wholesale business in cloth under the name and style, Messrs. Chunilal Rameshwarlal at Deoghar. For the purpose of determination of taxable income the assessee claimed deduction of a sum of Rs. 125 on account of the payment made by him to Deoghar Municipality as professional Tax under Section 150A of the Act for the assessment year of 1961-62. Both the Income-tax Officer and the Appellate Assistant Commissioner of Income Tax disallowed the deduction. However, the Income Tax Appellate Tribunal accepted the contention of the assessee that the tax paid to the municipality was not a personal Tax levied on the profits or gains of any business or assessed in proportion to or otherwise on the basis "of any such profits or g....
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....undred rupees, per annum or the value of whose place of business does not exceed ten rupees per mensem or whose income from employment does not exceed twenty-four hundred rupees per annum. The proviso contemplates three kinds of exceptions depending on (i) the taxable income, (ii) the valuation of the business premises and (iii) the income from employment. 4. The relevant provisions made in the Fourth Schedule of the Municipal Act may be quoted here:-- "1. Every licence shall be granted under one or the other of the classes mentioned in the second column of the following table and there shall be paid half yearly from 1st April to 30th September and 1st October to 31st March, for the same a Tax not exce....
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....he opinion of the Commissioners, reasonably be expected to let and shall include godowns and other places for storing or keeping things of merchandise or other stores, required for the exercise of profession, trade and calling or carrying out any manufacture. (c) Commissioner agent, broker (not included in serial No. 2), architect, engineer, contractor, medical practitioner (whether registered or not), owners of pathological laboratories and clinics, dentist, barrister, legal practitioner, ferry farmer and person holding employment - (a) in respect of whose income, income-tax is assessed - (i) having half-yearly income of not less than Rs. 15,000 ... 125.00." 5. The aforesaid provisions clearly envisage three k....
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....carries on business in premises within the municipal area and the value of such premises falls within the taxable limit as provided in the Fourth Schedule, he has to pay such professional tax as mentioned therein. Clause 2 of the Fourth Schedule provides that where the owner or occupier of any place of business is required to take out a licence, the licence shall be taken out by the occupier if the business is carried on by occupier, but otherwise by the owner. The pavment of the tax may be regarded as part of the expenditure of the person which is essential for carrying on the business within the municipal limit as any other expenditure. Serial (a) of Clause 1 makes provision for the pavment of the tax on trade, profession, etc. carried....
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....id on account of land-revenue, local rates or municipal taxes in respect of such part of the premises as is used for the purposes of the business, profession or vocation; (4) Nothing in Clause (ix) or Clause (xv) of Sub-section (2) shall be deemed to authorise the allowance of any sum paid on account of any cess, rate or tax levied on the profits or gains of any business, profession or vocation or assessed at a proportion of or otherwise on the basis of any such profits or gains; Sub-section (4) of Section 10 of the Indian Income-tax Act, 1922 clearly says that if any sum is paid on account of any cess, rate or tax levied on the profits or gains of any business, profession or vocation or assessed at a proportion of or otherwise on the....