REDDAPPA S DR Vs. UNION OF INDIA

JUDGEMENT

(1.) CONSTITUTIONAL validity of ss. 234A, 234B and 234C of the IT Act, 1961 (hereinafter referred to as "the Act"), inserted by the Direct Tax Laws (Amendment) Act, 1987, was challenged by the appellants-assessee in various writ petitions filed by them, which were dismissed by the learned single Judge, vide the judgment impugned in these appeals.

(2.) IT was submitted on behalf of the appellants that the offending sections were penal in nature, without providing for any safeguards or even an opportunity of being heard, which violated the constitutional guarantees of the assessees. IT was submitted that as the offending provisions were penal in character, it required that the assessee were entitled to be heard before they could be punished under the said provisions and as the opportunity of being heard has been denied, the offending sections were liable to be struck down as ultra vires. IT was argued in the alternative that in case the sections are not declared unconstitutional, the Court may give such an interpretation, which may require the authorities under the Act to afford an opportunity of being heard, before any order is passed under the aforesaid provisions.

(3.) TAX is collected by all forms of Governments for providing protection, security and other amenities to the citizens. It is a compulsory acquisition of property by the State, ostensibly on behalf of the assessee for the purpose of providing amenities and looking after the vital interests of the society. It is unfortunate that the tax laws in our country are technically couched, making their interpretation difficult, with the result that the Courts are burdened with litigation and unscrupulous litigants take advantage of the wrangles of procedure by trading in the phrases and words used in the taxing statute. The language used in the fiscal laws has been found to be such, the wriggling out of which is left to the wisdom of a few. The time has come which may necessitate not only the restructuring of the taxation law system, but also to provide a plain, capable and smooth interpretation, reflecting and demonstrating the object sought to be achieved by the legislation.