TaxTMI 
TaxTMI 
1967 (12) TMI 28
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....ts. JUDGMENT SHAH J.-- The respondent, a joint stock company, has its principal place of business in Bombay, and a branch office in New Delhi. The assessing authority, Karnal, exercising power under the Punjab Professions, Trades, Callings and Employments Taxation Act, 1956 (7 of 1956), assessed the respondent to profession tax for the years 1960-61 and 1961-62 and issued a notice of demand for....
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.... the State of Punjab. It has also not appointed any agent or representative to carry on business on its behalf within the State. The respondent supplies goods to the Government of Punjab and certain " semi-governmnent bodies " in the State in execution of orders received at its branch office at Delhi. The goods are despatched from Delhi by rail or by public motor transport. Pursuant to the terms a....
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....and presented to the purchasers duly, endorsed in their favour to secure realization of the price of the goods. Liability to pay tax under Act 7 of 1956 arises if a person carries on trade by himself, or through his agent, or follows a profession or is in employment within the State, and not otherwise. The expression " trade " is not defined in the Act. " Trade " in its primary meaning is the ex....
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....as no shop or office within the State of Punjab. The respondent supplies goods within the State pursuant to orders received and accepted at New Delhi, and, also receives price for the goods within the State. But these are ancillary activities and do not in our judgment amount to carrying on trade within the State of Punjab. We need not refer in detail to cases such as Grainger and Sons v. Gough (3....