JUSTICE DEOKI ANNDAN AGARWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The appellant was a Judge of the Allahabad High Court. He filed his income tax return for the Assessment Year 1978-79 on the basis that the salary that he received as a Judge was not liable to tax under the Income Tax Act. The contention having been rejected both by the I. T. O. and in appeal, a special leave petition was filed. Leave to appeal was granted and on 19th April, 1983 the following four questions were referred by two learned Judges to a Constitution Bench:

(2.) It appears that the second question arose on a writ petition which stood transferred to this Court and which was withdrawn earlier today. This question does not, therefore, survive for consideration. The third question, it is said by learned counsel for the appellant, was raised suo motu by this Court and we do not think, in the circumstances, that it should be answered.

(3.) Learned counsel for the appellant concentrated on the first and fourth questions. The fundamental question is whether the salary of a High Court Judge and a Supreme Court judge was liable to income tax prior to 1st April 1986. It must be stated here that it is not disputed that, with effect from 1st April, 1986 when Articles 125 and 221 stood amended, such salaries are taxable because Parliament then became entitled to legislate thereon.