SHREE MEENAKSHI MILLS LTD., MADURAI versus SRI A. V. VISVANATHA SASTRI AND ANOTHER.

SHREE MEENAKSHI MILLS LTD., MADURAI versus SRI A. V. VISVANATHA SASTRI AND ANOTHER.

After the introduction of the new sub-section in section 34 of the Indian Income-tax Act, 1922 (by Act XXXIII of 1954) covering the same class previously treated under section 5(1) of the Taxation on Income (Investigation Commission) Act, 1947, the latter section’s discriminatory procedure is void and unenforceable as per Article 14 of the Constitution. Proceedings under the impugned Act cannot be continued when persons with common characteristics are covered by one procedural law.

Parties
Petitioner: Shree Meenakshi Mills Ltd., Madurai; Respondent: Sri A. V. Visvanatha Sastri and Another
Jurisdiction
India
Judgment Date
21 October 1954
Procedural Posture
Original Jurisdiction (petitions Nos. 330 to 333 of 1954 Under Article 132 of the Constitution of India) / Final Judgment With Writ Issued
Outcome
Writ issued in favour of petitioners
Legal Topics
Article 14 Right to Equality, Repeal by Implication, Discriminatory Procedure, Validity of Pre Constitution Laws, Taxation on Income (investigation Commission) Act, 1947, Indian Income Tax Act, 1922 as Amended by 1954 Act
Constitutional Law Tax Law Article 14 Right to Equality Repeal by Implication Discriminatory Procedure Validity of Pre Constitution Laws Taxation on Income (investigation Commission) Act, 1947 Indian Income Tax Act, 1922 as Amended by 1954 Act

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Parties

Shree Meenakshi Mills Ltd., Madurai

Petitioner

Sri A. V. Visvanatha Sastri and Another

Respondent

Procedural Posture

Original Jurisdiction (petitions Nos. 330 to 333 of 1954 Under Article 132 of the Constitution of India) / Final Judgment With Writ Issued

Legal Issues

  1. 1 Whether section 5(1) of Taxation on Income (Investigation Commission) Act, 1947 is void and unenforceable after the amendment of section 34 of Indian Income-tax Act, 1922 by Act XXXIII of 1954
  2. 2 Whether the continued application of a discriminatory procedure under section 5(1) violates Article 14 of the Constitution

Ratio Decidendi

After the introduction of the new sub-section in section 34 of the Indian Income-tax Act, 1922 (by Act XXXIII of 1954) covering the same class previously treated under section 5(1) of the Taxation on Income (Investigation Commission) Act, 1947, the latter section’s discriminatory procedure is void and unenforceable as per Article 14 of the Constitution. Proceedings under the impugned Act cannot be continued when persons with common characteristics are covered by one procedural law.

Court Disposition

Writ issued in favour of petitioners

Orders

  • Investigation Commission prohibited from proceeding further with the cases of the petitioners under Act XXX of 1947
  • No order as to costs