TMI Blog1992 (9) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 regulation of the company or is in the nature of a corporation tax inasmuch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 "corporation tax" is defined as tax on income so far as that, tax is payable by companie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious regulations under labour enactments, the Companies Act and other tax enactments, to burden the companies with additional tax of Rs. 2,500 under the Act is an unreasonable restriction. It is difficult to appreciate or understand this contention. It is not the contention of the petitioner that the tax imposed under the Act is excessive. Nor is it its case that by reason of this burden, it is unable to carry on its activities or that it results in annihilation or total extinction of its trade. As long as these factors are not established, I do not think any case is made out for examination under article 19(1)(g) of the Constitution. The next argument advanced is one under article 14 of the Constitution. The contention raised does not b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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