| Case ID |
26587e70-5822-4118-a22a-99604e4106ae |
| Body |
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| Case Number |
Civil Appeals Nos. 152 and 153 of 1979 |
| Decision Date |
Oct 30, 1996 |
| Hearing Date |
|
| Decision |
The Supreme Court of India ruled that subsection (3) of section 140A of the Income Tax Act, 1961, which mandates penalties for non-payment of tax on self-assessment, does not infringe upon the rights granted under Article 19(1)(f) of the Constitution of India. The Court reversed the decision of the Madras High Court that had previously declared this provision as void. The ruling agreed with the reasoning of several other High Courts across the country that had disagreed with the Madras High Court's judgment. The provision in question had been repealed prior to this ruling, thus the Court found it unnecessary to elaborate further on the subject, ultimately allowing the appeals and setting aside the High Court's judgment. No costs were awarded in this case. |
| Summary |
In the landmark case of A.M.S. Sali Maricar v. Income Tax Officer, the Supreme Court of India addressed significant questions regarding the constitutionality of penalties imposed under the Income Tax Act, particularly concerning self-assessment procedures. The Court overturned the Madras High Court's previous ruling that subsection (3) of section 140A was unconstitutional, affirming that the penalties did not violate the right to property as outlined in Article 19(1)(f) of the Constitution. This decision is essential for tax law practitioners and taxpayers alike, clarifying the legal standing of self-assessment penalties and reinforcing the authority of the Income Tax Department. The ruling also aligns with prevailing opinions from other High Courts, establishing a unified legal interpretation across jurisdictions. The case underscores the importance of compliance with tax obligations and the legal framework governing self-assessment in India. Keywords: Income Tax Act, self-assessment, constitutional law, Supreme Court of India, tax penalties. |
| Court |
Supreme Court of India
|
| Entities Involved |
Madras High Court,
Income Tax Department
|
| Judges |
B.P. Jeevan Reddy,
K. S. Paripoornan
|
| Lawyers |
Dr. R.R. Mishra, Senior Advocate,
Anil Srivastava,
S.N. Terdol,
A.T.M. Sampath
|
| Petitioners |
Income Tax Officer,
|
| Respondents |
A.M.S. Sali Maricar
|
| Citations |
2001 SLD 365,
2001 PTD 2470,
(2001) 247 ITR 808
|
| Other Citations |
(1973) 90 ITR 116,
(1977) 107 ITR 825,
(1988) 173 ITR 609,
(1995) 216 ITR 172,
(1987) 163 ITR 341
|
| Laws Involved |
Indian Income Tax Act, 1961,
Constitution of India
|
| Sections |
140A(3),
19(1)(f)
|