Delhi High Court held certain ICDS & Part of them Ultra Vires

The Chamber of Tax Consultants & Anr Vs. Union Of India & Ors (Delhi High Court)

Pursuant to the writ petition filed by Chamber of Tax Consultant  against the provision of ICDS which has the effect of over ruling the decisions of various Courts  and Legal Provisions, Delhi High Court has held  as follows :-

(i) Section 145 (2), as amended, has to be read down to restrict power of the Central Government to notify ICDS that do not seek to override binding judicial precedents or provisions of the Act. The power to enact a validation law is an essential legislative power that can be exercised, in the context of the Act, only by the Parliament and not by the executive. If Section 145 (2) of the Act as amended is not so read down it would be ultra vires the Act and Article 141 read with Article 144 and 265 of the Constitution.

(ii) The ICDS is not meant to overrule the provisions of the Act, the Rules thereunder and the judicial precedents applicable thereto as they stand.

(iii) The decision in J.K. Industries Ltd. v. Union of India (supra) is distinguishable in its application to the case on hand.

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