STATE OF PUNJAB & ANR. vs PREM SUKHDAS & ORS.

The Supreme Court interpreted Sections 2(b) and 3 of the Punjab Professions, Trades, Callings and Employments Taxation Act, 1956, clarifying that the tax applies to income earned both within and outside the State. The Court held that the High Court erred in limiting the tax assessment to income derived solely within the State, emphasizing that the total gross income must include earnings from outside as well. The judgment allowed the State's appeal and remitted the case to the High Court for further proceedings.