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december 1955

Supreme Court of India · 1955-12-20

M.CT. MUTHIAH & 2 OTHERS vs THE COMMISSIONER OF INCOME-TAX, MADRAS & ANOTHER.

Citation / case number
SC 1954/90310
Court
Supreme Court of India
Petitioner
M.CT. MUTHIAH & 2 OTHERS
Respondent
THE COMMISSIONER OF INCOME-TAX, MADRAS & ANOTHER.
Bench
DAS, SUDHI RANJAN,BOSE, VIVIAN,BHAGWATI, NATWARLAL H.,JAGANNADHADAS, B.,SINHA, BHUVNESHWAR P.

Judgment text excerpt

The Supreme Court ruled that Section 5(1) of the Taxation on Income (Investigation Commission) Act, 1947 is ultra vires the Constitution as it violates Article 14 by being discriminatory. The Court found that amendments to Section 34 of the Indian Income-Tax Act, 1922 in 1948 and 1954 materially altered the legal landscape, allowing for a less stringent standard for income assessment. Consequently, the provisions of Section 5(1) could not stand in light of the amended Section 34(1), leading to the invalidation of the former.

M.CT. MUTHIAH & 2 OTHERS vs THE COMMISSIONER OF INCOME-TAX, MADRAS & ANOTHER. · Niyam