Case Law Details
Salem Textiles Ltd. Vs Union of India (Madras High Court)
The case of Salem Textiles Ltd. Vs Union of India brought before the Madras High Court challenges the constitutionality of certain provisions within the Income Tax Act. This article delves into the details of the case, the arguments presented, and the court’s decision.
Detailed Analysis
The petitioners, represented by Ms. G. Pramila, contested the validity of Sections 115 WA to 115 WL of the Income Tax Act, 1961. These provisions came under scrutiny for their constitutionality, particularly Sections 115 WA(2) and 115 WB(2)& (1).
The crux of the argument lies in the removal of these provisions from the statute book by the Finance Act 2/2009, effective from 01.04.2010. The petitioners asserted that since these provisions no longer existed in the statute, they should not be subject to legal challenge.
In the absence of representation from the respondents, the court considered the submissions of the petitioners. It was acknowledged that the provisions in question were indeed removed from the statute by the Finance Act 2/2009.
Given that no consequential relief was sought by the petitioners and that the petitions had become purely academic, the court opted not to decide on the prayers made in the petitions. Consequently, the writ petitions were disposed of, with no costs imposed.
Conclusion
The Madras High Court’s disposal of the petitions challenging the constitutionality of certain provisions of the Income Tax Act, particularly Sections 115 WA(2) and 115 WB(2)& (1), marks a significant legal precedent. While the court refrained from ruling on the merits of the case due to its academic nature, the decision underscores the importance of legal clarity and the evolving landscape of tax legislation in India.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
We have heard Ms. G. Pramila, learned counsel for the petitioners. None appears for the respondents.
2. Sections 115WA to 115WL of the Income Tax Act, 1961, are assailed in these writ petitions.
3. Learned counsel for the petitioners submits that the provisions assailed in the writ petitions no longer find place in the statute book and the same are removed by the Finance Act 2/2009 with effect from 01.04.2010.
4. No consequential relief is claimed in the writ petitions. As the writ petitions are now only academic, we need not decide the prayer made in the writ petitions.
5. The writ petitions, as such, are disposed of. There shall be no order as to costs. Consequently, W.P.M.P.Nos.15500 to 15504 of 2006 are closed.
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