RAMABHADRA RAJU P Vs. UNION OF INDIA

JUDGEMENT

(1.) IN these petitions under Article 226 of the Consti-tution of INdia, the constitutionality of Section 3 of the Wealth-Tax Act, 1957 (XXVII of 1957) (hereinafter referred to as the Act) is challenged.

(2.) THE Wealth Tax Officer, Eluru passed orders on 26-1-1958 and 22-11-1958 assessing the petitioner and his adopted sou as a Hindu Undivided family to wealth-tax for the years 1957-58 and 1958-59 respectively under Section 16(3) of the Act, and the assets of the family were made eligible to a tax of Rs. 27,779-85 nP. for the year 1957-58 and Rs. 37, 491-98 nP. for 1958-59. By notices dated 26-1-1958 and 22-11-1958, the assessee was required to pay the taxes under Section 30 of the Act on or before 15-2-1958 and 24-12-1958 respectively. THEreupon, the assessee moved this court to remove those orders on certiorari.

(3.) IN this petition, the. attack is concentrated on Section 3 of the Act which, as we have already stated, is the charging section and which subjects the capital assets of the Hindu family to tax. We are, therefore, called upon to decide whether Section 3 so far as it bears on the assets of a joint Hindu family, is ultra vires the powers of the Parliament. The answer to this is provided by the constitution of entry 86 in list I of the seventh Schedule on which the impugned legislation is founded. That entry reads: