Article 265 and the Authority to impose Tax: An Overview

Author: Bineet Kedia, Lecturer-in-Law, Amity University Rajasthan

The origin of the word ‘tax’ is from ‘taxation’ which means an estimate. In India, the system of direct taxation has been in force in one form or another even from ancient times. There are references both in Manu Smriti and Arthasastra to a variety of tax measures. Manu, the ancient stage and the law giver, cautioned the king against excessive taxation. Kautilya, the author of Arthasastra, emphasizes on equity and justice in taxation1.

  1. See, www.incometaxindia.gov.in/History/Pre-1922.ASP, last accessed on 20th of June, 2013. []
  2. S. Gopalan vs. State of Madras, (1958) 2 MLJ 117 []
  3. State of Kerala vs. K.P. Govindan (1975) 1 SCC 281 []
  4. V.N. Shukla., “Constitution of India”, Eastern Book Company, Luckhnow, edt. Tenth, 2001S []
  5. D.D. Basu, “Shorter Constitution of India”, Prentice Hall of India, New Delhi, 1994 []
  6. AIR 1961 SC 552 []
  7. AIR 1961 Mani 1 []
  8. [1984] 2 SCC 456: AIR 1984 SC 762 []
  9. AIR 1985 SC 1041 []
  10. Air 1960 SC 184 []
  11. [1985] 2 SCC 197. 223 []
  12. AIR 1959 SC 1124 []
  13. [1972] 1 SCC 70 []
  14. K. Parameswaran, “Power of Taxation Under the Constitution”, Eastern Book Company, Lucknow, 1987 []
  15. N.M. Renuka, “Taxation and the Constitution”, Current Tax Reporter, 2004 []
  16. Laxmi cotton Traders vs. State of Haryana, AIR 1969 Punj 12 []
  17. [1972] 1 SCC 17, 22-23 []
  18. Jaora Sugar Mills vs. State of Madhya Pradesh, AIR 1966 SC 416, 421 []
  19. Janapada Sabaha vs. Central Provinces Syndicate, (1970) 1 SCC 509 []
  20. M.P. Jain, “Indian Constitutional Law”, Wadhwa and Company, Nagpur, 2003 []
  21. [1975] 4 SCC 101 []
  22. [1967] 64 ITR 669 [Ker] []
  23. [1983] 3 SCC 529 []
  24. [1969] 3 SCC 311, 319 []
  25. [1979] 4 SCC 118 []
  26. K. Parameswaran, “Power of the Taxation under the Constitution”, Eastern Book Company, Luckhnow, 1987 []
  27. [1979] 4 SCC 232, 242 []
  28. Sec 43B refers to the deduction allowable in respect of the sum payable by an assessee by the way of tax, duty, cess, fee, or by whatever name called under any law for the time being in force is paid within the stipulated time []
  29. Dr. I. Vijayakumar, “Business Expenditure Definition of Fees referred to in Section 43B of the Income Tax Act”, Current Tax Reports, Vol. 177, pg. 49  []
  30. [2002] 173 CTR (Bom) 188: 2002 253 ITR  (Bom). []
  31. It means when particular words pertaining to a class, category or genus are followed by general words, the general words are construed as limited to the things of the same kind as those specified []
  32. [1987] 164 ITR 376 SC []
  33. AIR 1952 SC 282: 1954 SCR 1006 []
  34. J.N. Pandey, “Constitutional Law of India”, Central Law Agency, 2004 []
  35. Ibid []
  36. Payment made for something received of more or less equivalent value or advantage while a tax was conceived of as a levy for providing common facilities []
  37. T.N. Pandey, “Fees VS. Tax- Supreme Court enlarges the concept of Fee”, Current Tax Reports, 2001, Vol.166, at pp.  73 []
  38. 1971 ASC 1182 []
  39. AIR 1999 SC 635 []
  40. AIR 1954 SC 400 []
  41. Parameswaran, “Power of Taxation under the Constitution”, Eastern Book Company, 1987 []