T.M. KANNIYAN vs INCOME-TAX OFFICER, PONDICHERRY AND ANR.(With Connected Pe

The Supreme Court upheld the validity of the Tax Laws (Extension to Union Territories) Regulation, 1963, enacted by the President under Article 240 of the Constitution. The Court clarified that the President's power to make regulations for 'peace, progress and good government' is broad and includes the authority to amend or repeal existing laws applicable to Union territories. It was established that Parliament has plenary power to legislate for Union territories under Article 246(4), and the definition of 'State' in Section 3(58) of the General Clauses Act, 1897, does not limit this power. The Regulation was thus affirmed as having the same force as an Act of Parliament.