Supreme Court of India · 1993-02-04
COMMISSIONER OF WEALTH TAX vs DR. KARAN SINGH .
- Citation / case number
- SC 1985/66456
- Court
- Supreme Court of India
- Petitioner
- COMMISSIONER OF WEALTH TAX
- Respondent
- DR. KARAN SINGH .
- Author
- SHARMA, L.M. (),PANDIAN, S.R. ,MOHAN, S. ,JEEVAN REDDY, B.P. ,BHARUCHA S.P.
- Bench
- SHARMA, L.M. (CJ),PANDIAN, S.R. ,MOHAN, S. ,JEEVAN REDDY, B.P. ,BHARUCHA S.P.
Judgment text excerpt
The Supreme Court held that the Wealth Tax Act, 1957 is covered by Entry 86 of List I of the Seventh Schedule of the Constitution of India, affirming its constitutional application to the State of Jammu and Kashmir. The Court clarified that the tax is a net wealth tax, levied on individuals and companies based on the capital value of their assets, after deducting debts and liabilities. The High Court's ruling that the Act was only relatable to Entry 97 was overturned, establishing that the Act's extension to Jammu and Kashmir is valid under Article 246.