1992 (9) TMI 66

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....umber 19 refers to companies registered under the Companies Act and engaged in any profession, trade or calling and the rate of tax is at Rs. 2,500. The petitioner calls in question the validity of this legislation in so far as it taxes the companies on the following grounds: (i) That there is no legislative competence to levy tax inasmuch as, under entry 43 of List I to the Seventh Schedule to the Constitution of India, the incorporation, regulation and winding up of trading corporations, etc., is with the Union Legislature and entry 85 thereof provides for corporation tax and the said entry read with article 366(6) of the Constitution must be understood that the tax on profession, trade or calling of the company will also be a kind of ....

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....at it is a tax relating to income provided it keeps within the limits available under sub-clause (2) thereof and this power will not in any way cut down or restrict the power of Parliament with respect to taxes occurring or arising from professions, trades and callings is made clear in sub-clause (3) thereof. Therefore, even if the contention advanced on behalf of the petitioner is correct, still when article 276 itself specifically authorises the Legislature of a State to levy tax under article 276 notwithstanding that it may amount to tax on income, I do not think it is any longer open to the petitioner to urge that the tax with which we are concerned is a corporation tax. In the definition at article 366(6) of the Constitution "corporati....