PANDIT RAM NARAIN vs THE STATE OF UTTAR PRADESH ANDOTHERS.

The Supreme Court held that under Section 14(1)(f) of the U.P. Town Areas Act, 1914, residence within the Town Area is not a necessary condition for the imposition of a tax on circumstances and property. The Court established that carrying on business within the Town Area provides sufficient nexus for tax imposition. The assessment of the tax on the appellant was upheld as legally valid, and Rule 3 of the relevant tax regulations was found to be valid and not exceeding the provisions of the Act.