Fraser and Ross vs Corporation of Madras

Beasley, C.J.—The answer to the reference before us which is made by the learned Chief Judge of the Court of Small Causes is that Messrs. Eraser & Ross cannot themselves be made liable to pay the profession tax out of their own income. They are chartered accountants and as chartered accountants have been duly charged with profession tax on their income and at its highest rate. It is in the course of the exercise of the profession of chartered accountants that they are carrying on as Receivers appointed by this High Court the affairs of the Nadar estate and this arrack business on its behalf in Madras. The remuneration which they receive as Receivers in respect of this estate and of this business forms part of their total income upon which profession-tax has already been paid. Clearly they are not liable to pay any further profession tax themselves out of their income; but if this business is earning a profit profession-tax upon it can and should be levied Who is to be responsible for its collection and payment to the Corporation ? Equally clearly the Receivers from out of the profits of the estate received and to be received by them. The reference is answered accordingly. The case is sent back to the Court of Small Causes to be disposed of u/s 18, Schedule 4, City Municipal Act (4 of

1919).