Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Kamataka Agricultural lncome Tax Act 1957-s. 26(4) explanation - Validity of an explanation added retrospectively to s. 26(4) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Kamataka Agricultural Income Tax Act, 1957—s. 26(4) explanation — Validity of an explanation added retrospectively to s. 26(4) — Assessment of agricultural income — Received by a firm after it is dissolved insofar as the income of the firm pertaining to actual cash receipts after the firm is dissolved but relating to income eamed prior to dissolution — In L.P. Cardoza:case, High Court held that a dissolved firm could not be assessed to agricultural income tax after the date of its dissolution in respect of income received for supply of goods made by the firm prior to its dissolution, since after dissolution firm-has no existence and s.26(4) referred to only discontinuance of business of a firm and not to dissolution of a firm — Subsequently amendment of s. 26(4) retrospectively wef, 01.04.1975 — Challenge to — Single Judge of the High Court upheld retrospective amendment — Division Bench following D. Cawasji case held that the object of the amendment was to undo the Cardoza’s case, thus, was unconstitutional — On appeal, held: With effect from 01.04.1975, dissolved firms will by legal fiction, continue to be assessed, for the purposes of levy and collection of agricultural income tax, insofar as they receive income post dissolution but relating to transactions pre-dissolution — Legislature has not sought to directly nullify the judgment in Cardoza's case — Legal foundation on which the Cardoza’s case was built is retrospectively removed, which is well within the legislative competence of the legislature — Judicial decision in Cardoza’s case has been rendered ineffective by enacting a valid law on a topic within the legislative field which fundamentally alters or changes the character of legislation retrospectively — Changed or altered conditions are such that the previous decision would not have been rendered by the court if those conditions had existed at the time of declaring the law as invalid — Legislature did not directly overrule the decision but has only rendered, such decision ineffective by removing the basis on which the decision was arrived at — Thus, order passed by the Division |
Judge | Hon'ble Mr. Justice R.F. Nariman |
Neutral Citation | 2015 INSC 226 |
Petitioner | Assistant Commissioner Of Agricultural Income Tax & Ors. |
Respondent | Mis. Netley 'b' Estate & Ors. |
SCR | [2015] 3 S.C.R. 630 |
Judgement Date | 2015-03-17 |
Case Number | 8617-8635 |
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