HARI KRISHNA BHARGAV vs UNION OF INDIA AND ANOTHER

The Supreme Court upheld the validity of Chapter XXII-A of the Indian Income-tax Act, 1961, which introduced an annuity deposit scheme for high-income taxpayers. The Court ruled that Parliament has the authority under Article 246 and Entry 82 of List I to legislate for income tax and that the provisions for borrowing from taxpayers are within its legislative competence under Entry 97 of List I. The Court dismissed the petitioner's claims of colourable legislation and discrimination under Article 14, affirming that a taxing statute cannot be challenged solely on the grounds of being harsh or excessive.