MALANKARA PLANTATIONS LTD Vs. SECRETARY

JUDGEMENT

(1.) Whether profession tax is to be paid even if there is no income is the question to be decided in this case. It is the contention of the petitioner that during the year 2001-02 and 2002-03 not only that the petitioner Company did not have any income for the purpose of assessment under the Agricultural Income Tax Act, but had suffered huge loss also. Since the assessment of income is to be based on the income as assessed under the Agricultural Income Tax Act, it is submitted that petitioner is not liable to pay profession tax for those years.

(2.) Section 204 of the Kerala Panchayat Raj Act, 1994 provides for profession tax. To the extent relevant, the same reads as follows:

(3.) Petitioner contends that since the indication for the basis of income under Rule 5(a) is the assessment for the purpose of Agricultural Income Tax Act, as there is only loss for the Company during the relevant years and thus there being no income, there is no liability to pay profession tax. It is further contended that, it is not as if the income is not ascertainable or where there is no such assessment under the taxing statutes; it is the situation of a finding regarding the loss and thus there being no taxable income under the taxing statutes, there is no liability to pay profession tax.