B.N.Jha, J.

1. The following question has been referred to this Court under Sec. 66(1) of the Indian Income-Tax Act, 1922 (hereinafter referred to as the Act), by the Appellate Tribunal. Patna for its opinion:-

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"Whether on the facts and circumstances of the case, the sum of Rs. 125 payable by the assessee under the provisions of Sec.150A of the Bihar and Orissa Municipal Tax Act, 1922, is allowable under the Indian Income-Tax Act, 1922."

2. The assessee is an individual and carries on wholesale business in cloth under the name and style, Messrs. Chunilal Rameshwarlal at Deoghar. For the purpose of determination of taxable income the assessee claimed deduction of a sum of Rs. 125 on account of the payment made by him to Deoghar Municipality as professional Tax under Sec.150A of the Act for the assessment year of 1961-62. Both the Income-tax Officer and the Appellate Assistant Commissioner of Income Tax disallowed the deduction. However, the Income Tax Appellate Tribunal accepted the contention of the assessee that the tax paid to the municipality was not a personal Tax levied on the profits or gains of any business or assessed in proportion to or otherwise on the basis "of