VISALAKSHI Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) IN these matters, we are asked to pronounce on the validity of paragraph 4 of the Compulsory Deposit (INcome-tax Payers) Scheme, 1963, made by the Central GOvernment in exercise of the power conferred by section 5 of the Compulsory Deposit Scheme Act, 1963 (Act No. XXI of 1963).

(2.) THE question arises thus : he Compulsory Deposit Scheme Act, 1963 (Act No. XXI of 1963), which was a law made by Parliament, came into force on June 1, 1963. Section 2 of that Act provided that it shall apply to the categories of persons enumerated in it including persons liable to payment of tax under the Income-tax Act, to whom clause (b) of that section referred. THE purpose of the Act was to compel deposits by person by whom additional surcharge was payable in respect of any assessment year, made a deposit under the Act, he would be entitled to a deduction from the additional surcharge of a sum which was either equal to the sum deposited or a certain proportion of his residual in come. THE expression "residual income" was defined by section 2 of the Finance Act, 1963 (Act No. XIII of 1963).

(3.) SECTION 12 prescribed a penalty for failure to make the deposit, and section 13 for recovery of arrears of deposit and the penalty as an arrear of land revenue.