MODI ENGINEERING PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner has challenged the constitutional validity of the amended provision of Section 253(6) of the Income-tax Act, 1961, which has been brought into force by the Finance Act, 1992, with effect from June 1, 1992. THE aforesaid provision deals with payment of court fee in respect of the appeal before the Income-tax Appellate Tribunal. THE fee prescribed is Rs. 250 in cases where the income assessed is Rs. 1 lakh or less. THE cases in which the total income of the assessee computed is more than Rs. 1 lakh and such assessment is challenged by way of appeal, the fee is Rs. 1,500.

(2.) THE petitioner contends that before 1970, when the provision was inserted, the basis for levy of fees for filing appeal was initiation of the proceedings. Now, the basis is changed. It is submitted that the provision is arbitrary and the fee prescribed is excessive.