Heard Mr.S.Subbiah, learned Senior Counsel appearing for the petitioner and Mr.T.V.Krishnamachari, learned Central Government Standing Counsel appearing for the first respondent and Mr.J.Narayanaswamy, learned Standing Counsel appearing for the second respondent.
2.The petitioner has come forward with this Writ Petition for issuance of Writ of Declaration to declare Sections 115 WA to WL of the Income Tax Act, 1961 as introduced by the Finance Act 2005, as well as the Rules made in the Income Tax Rules, 1994, as ultra vires Articles 14, 19(1)(g) of the Constitution of India and as beyond the legislative competence of Parliament, in so far as the members of the petitioner association is concerned.
3.The learned counsel for the petitioner as well as the learned counsel for the Revenue submitted that the declaration sought for in this Writ Petition has been now seized of by the Hon'ble Supreme Court and similar Writ Petition has been transferred to the Hon'ble Supreme Court from the other High Courts as well.
4.Thus, considering the fact that the matter is now seized of by the Hon'ble Supreme Court, this Writ Petition can be disposed of with appropriate directions, leaving it open to the parties i.e. the petitioner as well as the Revenue to abide by the decision of the Hon'ble Supreme Court.
5.The learned counsel for the Revenue expressed an apprehension that in the event the Hon'ble Supreme Court uphold the provisions as being a valid piece of legislation, then the assessee like the petitioner should not plead that the action that may be initiated by the Department or in the process of being initiated, is barred by limitation.
6.The Revenue need not have any apprehension in this regard, as the Court proposes to safeguard the interest of the Revenue by passing the following orders:
"The petitioner is directed to abide by the decision of the Hon'ble Supreme Court where the challenge to the impugned provisions are pending. It is made clear that in the event the Hon'ble Supreme Court upholds the impugned legislation and the Department initiates action or proceeds with the action already initiated, the petitioner/assessee is not entitled to plead limitation and the period during which this Writ Petition is pending as well as the period till the matter is decided by the Hon'ble Supreme Court, shall stand excluded for computation of limitation.
7. The Writ Petition is disposed of accordingly. No costs.
12.09.2017 sli Index:yes/No Internet:yes Speaking order/Non speaking order To
1. UNION OF INDIA, MINISTRY OF FINANCE, REP. BY THE SECRETARY, MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS GOVERNMENT OF INDIA, SHASTRI BHAVAN, R.P. MARG, NEW DELHI- 110 002.
2. CENTRAL BOARD OF DIRECT TAXES, REPRESENTED BY ITS SECRETARY, GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NEW DELHI.
T.S.SIVAGNANAM, J sli W.P.No.34799 of 2005 12.09.2017