| Case ID |
2cd6ae42-deb5-42e7-b7df-11ee4718a1c4 |
| Body |
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| Case Number |
WRIT PETITION Nos. 528, 296 OF 1977, 55 OF 1978, 7 |
| Decision Date |
Apr 19, 1983 |
| Hearing Date |
|
| Decision |
The Supreme Court held that the Wealth-tax Act, 1957, as it applies to the State of Jammu and Kashmir, is ultra vires the Constitution of India. The court determined that the Parliament lacked the legislative competence to enact this Act for the State, as the subject matter fell within the residuary powers of legislation that are reserved for the Jammu and Kashmir State Legislature. Consequently, the provisions of the Wealth-tax Act, specifically Section 3, which imposes a charge on the net wealth of individuals, were deemed unconstitutional in this context. The decision reaffirmed the exclusive authority of the state legislature over matters not covered by the Union List, emphasizing the unique constitutional position of Jammu and Kashmir. |
| Summary |
In this landmark case, the Supreme Court addressed the constitutional validity of the Wealth-tax Act, 1957, regarding its applicability to the State of Jammu and Kashmir. The petitioners, residents of Jammu and Kashmir, challenged the Act's legitimacy, arguing that the Parliament did not possess the legislative authority to impose wealth tax on the state. The court's analysis centered on Articles 246 and 248 of the Constitution, which govern the division of legislative powers between the Union and State legislatures. The court concluded that the Wealth-tax Act fell under the residuary powers of legislation, specifically reserved for the Jammu and Kashmir State Legislature. This ruling not only invalidated the application of the Wealth-tax Act in Jammu and Kashmir but also underscored the importance of respecting the unique legislative framework established for the state. The case serves as a critical reference point for understanding the legislative powers of different jurisdictions in India, particularly concerning fiscal matters. Keywords such as 'Wealth-tax Act', 'Jammu and Kashmir', 'constitutional validity', and 'legislative competence' highlight the core issues addressed in this case, making it relevant for ongoing discussions about state and central legislative powers. |
| Court |
Supreme Court
|
| Entities Involved |
Union of India,
Jammu and Kashmir State Legislature
|
| Judges |
Mufti Bha-ud-Din Farooqi, C.J.,
I.K. Kotwal, J.
|
| Lawyers |
J.M. Gupta,
M.M. Gupta,
S. Grover,
A.V. Gupta,
U.B.S. Bedi,
K. Kundan,
Joginder Singh,
H.L. Bhagotra,
G.P. Gupta,
V.S. Malhotra,
T.S. Thakur,
S. Dutt
|
| Petitioners |
P.C. Oswal
|
| Respondents |
S.P. Mehta, WTO
|
| Citations |
1983 SLD 995 = (1983) 142 ITR 574
|
| Other Citations |
Union of India v. Harbhajan Singh Dhillon [1972] 83 ITR 582 (SC),
Banarsi Dass v. WTO [1965] 56 ITR 224 (SC),
Sudhir Chandra Nawn v. WTO [1968] 69 ITR 897 (SC),
Asstt. Commissioner of Urban Land Tax v. Buckingham & Carnatic Co. Ltd. [1970] 75 ITR 603 (SC),
Shri Prithvi Cotton Mills Ltd. v. Broach Borough Municipality [1971] 79 ITR 136 (SC),
D.C. Gouse & Co. v. State of Kerala [1980] 1 SCR 804
|
| Laws Involved |
Wealth-tax Act, 1957
|
| Sections |
3
|