1. This is an appeal from the decision of Vaidialingam, J. in 0. P. No. 981 of 1960. That petition which has been allowed was by the respondent before us, Messrs. Harrisons and Crosfield Limited, Quilon. The appellant the 1st respondent in O. P. No. 981 of 1960 is the Commissioner of the Quilon Municipality.

2. The controversy relates to the assessment of the respondent to profession tax for the two half years of the financial year 1958-59. The assessment was on the basis of the proviso to R.18 (2) of the Taxation Rules in Schedule II to the Travancore District Municipalities Act, 1116 (M. E). The assessment order is Ext. B and the resolution of the Municipal Council dismissing the respondent's appeal and confirming the assessment is Ext. F dated the 15th March 1960.

3. R.18 (1) of the Taxation Rules reads as follows:

"Where a company or person transacts business in any half-year exclusively in the area of a single municipality, the income of such company or person from the transaction of such business shall, for

the purpose of levying profession tax under this Act during the half-year, be deemed to be

(a) where income tax is assessed on such company or person under the T