Judgment

BEG, C.J.I. :- The only question decided by the High Court of Punjab and Haryana in the cases now before us by special leave was whether S. 3 of the Punjab Professions, Trades, Callings and Employments Taxation Act, 1956 (hereinafter referred to as the Act) restricts taxation upon 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 employment, 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 the purpose of this section a person on leave shall be deemed to be a person in employment."

2. 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 the total "gross income". The term "total gross income" is defined by S. 2 of the Act as "aggregate gross income derived from various professions, trades, callings and employment