P RAMABHADRA RAJU Vs. UNION OF INDIA UOI

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.) The principal contention urged on behalf of the petitioner is that Section 3 of the Act, which enables the Revenue to tax a Hindu Undivided Family, is beyond the legislative competence of the Union Parliament and, consequently, the proceedings started by the proper Wealth-tax Officer under Section 14 read with Section 3, are invalid. The point for consideration is whether, it was competent for the Parliament to make a taxing law as respects Hindu Undivided families.