TATA TEA LTD. & ANR. ETC. vs STATE OF WEST BENGAL & ORS. ETC.

The Supreme Court examined the constitutional validity of sections 3 and 5 of the Bengal Agricultural Income-tax (Amendment) Act, 1980, and the Agricultural Income-tax (Amendment) Act, 1980 (Kerala Act No. 17 of 1980), which aimed to impose agricultural income-tax on the entire income from the sale of tea. The Court held that these amendments transgressed the legislative competence of the State Legislatures under Article 246(3) of the Constitution, as they sought to tax income beyond the permissible limit of 60% as defined in prior income tax laws. Consequently, the amendments were declared void and unconstitutional.