TMI Blog1977 (4) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... persons in Punjab to the income made within the State of Punjab. This section reads as follows :-- 3. Levy of tax--Every person who carried on trade either by himself or by an agent or representative, or who follows a profession or calling, or who is in employ- ment, either wholly or in part, within the State of Punjab, shall be liable to pay for each financial year or a part thereof a tax in respect of such profession, trade, calling or employment: Provided that for the purpose of this section a person on leave shall be deemed to be a person in employment . Section 4 of the Act provides for taxation in accordance with a schedule annexed to it. Section 5 lays down the manner of determination of the tax which is to be assessed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aggregate amount of the tax to be levied. That is dealt with by s. 5 read with s. 2 (b) of the Act as amended. And, in determining the amount of tax which an assessee has to pay or the grade in which he falls, the amount he makes outside must also be added to what he makes inside Punjab. His total gross income determines only his grade or amount of tax he has to pay. His subjection to a profession or calling tax depends only On the fact that he carries on some business. or has some trade or calling within the State of Punjab . The words qualifying the whole or a part of the calling which determines only the taxability of the person cannot possibly, on the language used, fix also the grade of taxa- tion in which the individual falls. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tution was also raised in the High Court, but, the High Court left this question open as it held in favour of the assessee on the first question. As the first question was decided by clearly misinterpreting the provisions of the Act as they stand, we have to allow these appeals. A Division Bench of the High Court, in the judgment under, appeal, had purported to follow an earlier Division Bench decision of the High Court in Beli Ram v. The Assessing Authority(1960 P.L.R. 846.), which had interpreted the provi- sions of s. 3 of the Act as the Act stood before the amend- ment of s. 2 in the manner indicated above. As the High Court had not decided the question of validity of the amend- ment these cases cannot be disposed of without deciding th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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