FEDERAL BANK OFFICERS ASSOCIATION Vs. UNION OF INDIA

JUDGEMENT

(1.) IN all these writ petitions, common question arises for consideration. Hence they are taken up together for hearing.

(2.) O .P. 10569/2003 and O.P. 8425/2002 were taken as the leading cases for argument. In O.P. 10569/2002 petitioners are officers of the third respondent Scheduled Bank. Respondents are (1) Union of India, (2) the Central Board of Direct Taxes and (3) the Federal Bank.

(3.) THE Federal Bank Officers Association itself filed an original petition before the Karnataka High Court, seeking for a declaration that rule 3(1)(ii) and rule 3(7)(1) notified by Ext. P1 as unconstitutional and unenforceable . The said writ petition was dismissed by a common judgment dated 17 -2 -2003. It is thereafter that the present writ petitions were filed challenging the validity of section 17(2)(vi) of the Act which, according to the petitioners, was not a subject matter of challenge in the earlier writ petition. Petitioners seek for a declaration that section 17(2)(vi) of the Income Tax Act as inserted by Finance Act 2001 is illegal and violative of articles 19(1)(g) and 246 of the Constitution of India, and a declaration that rule 3 of the Income Tax Rules, 1962 as substituted by Income Tax (22nd Amendment) Rules, 2001 by the second respondent under its Notification No. 940(E) dated 25 -9 -2001 as illegal and unconstitutional being hit by the vice of excessive delegation of power besides being ultra vires the rule making power of the second respondent and to stay the operation of the aforesaid provisions.