| Case ID |
df9859f0-360b-4c2f-b7f1-9cdd09a351d2 |
| Body |
View case body. Login to View |
| Case Number |
N/A |
| Decision Date |
Jan 01, 2002 |
| Hearing Date |
|
| Decision |
The Delhi High Court held that the insertion of sub-section (1C) of section 54E of the Income-tax Act, 1961, was constitutional and did not violate Article 14 of the Constitution. The court noted that the withdrawal of the exemption from capital gains tax was prospective from 1-4-1992, and the classification of assessees based on the date of advance receipt was rational and intelligible. The court dismissed the petitioner's claims of discrimination between two classes of assessees, affirming that the law was applied fairly and justly without any unreasonable classification. |
| Summary |
This case revolves around the interpretation of Section 54E of the Income-tax Act, 1961, particularly the newly inserted sub-section (1C) which restricted capital gains tax exemptions based on the date of advance receipt. The petitioner argued that this created two classes of assessees and violated Article 14 of the Constitution. The court upheld the constitutionality of the law, stating that the legislative intent was clear and aimed at protecting those who had received advances before the budget announcement. The ruling emphasized the importance of legislative discretion in tax matters, reinforcing the principle that tax laws can be structured to address specific fiscal policies. Keywords: Income-tax Act, capital gains tax, constitutional law, Delhi High Court, Article 14. |
| Court |
Delhi High Court
|
| Entities Involved |
N/A
|
| Judges |
D.K. Jain,
Ms. Sharda Aggarwal
|
| Lawyers |
Bishwajit Bhattacharya,
R.D. Jolly,
Ms. Rashmi Chopra
|
| Petitioners |
Bhupendra Kumar Bhaumik
|
| Respondents |
Union of India
|
| Citations |
2002 SLD 3063,
(2002) 259 ITR 58
|
| Other Citations |
Motilal Padampat Sugar Mills Co. Ltd. v. State of U.P. AIR 1979 SC 62,
State of Kerala v. Gwalior Rayon Silk Mfg. (Wvg.) Co. Ltd. AIR 1973 SC 2734,
National Agricultural Co-operative Marketing Federation of India v. Union of India [2001] 251 ITR 285 (Delhi),
Asstt. Director of Inspection/Investigation v. A.B. Shanthi [2002] (6) SCC 259,
Union of India v. Parameswaran Match Works AIR 1974 SC 2349,
D.G. Gouse & Co. (Agents) (P.) Ltd. v. State of Kerala AIR 1980 SC 271,
Daruka & Co. v. Union of India AIR 1973 SC 2711
|
| Laws Involved |
Income-tax Act, 1961,
Constitution of India
|
| Sections |
54E
|