MUNICIPAL COMMITTEE OF MALKAPUR Vs. BALLABHDAS MATHURADAS LAKHANI

JUDGEMENT

(1.) This Second Appeal raises a question of some importance in relation to the 'profession tax' imposed by Municipal Committee, Malkapur, the appellant before us.

(2.) THE facts relevant for the decision of the appeal are as below.

(3.) THE plaintiffs are the owners of a partnership firm named 'Mathuradas Mannalal of Malkapur' doing ginning and pressing business in Malkapur. They paid the tax for the years 1950 -51 to 1952 -53, totalling a sum of Rs. 6,509 -2 -0. Thereafter they instituted the present suit for recovery of the whole amount from the Municipal Committee on the ground that the levy of the tax was ultra vires and that no amount could be recovered by the Municipal Committee from them as it contravened the provisions of Section 142A of the Government of India Act, 1935, as then prevailing, and later the provisions of Article 276 of the Constitution, which prescribed the maximum limit of Rs. 250 for professional tax. The plaintiffs also claimed interest on the tax illegally recovered from them.