Author: admin

ISSUE:

Whether the term “individual” in Section 16(3) of the Indian Income-tax Act, 1922, includes a female, thereby permitting the inclusion of a mother's minor children’s income from a partnership in her total income?

RULE:

The Mischief rule laid down in Heydon’s Case examines the law's state before the statute was passed, the mischief or gap the statute addresses, Parliament’s remedy to cure the mischief, and the intended purpose behind the remedy.

ISSUE:

Whether the levy of a licence fee by the Corporation of Calcutta under Section 548(2) of the Calcutta Municipal Act, 1951, is a tax or a fee?

Whether the delegation of power to fix the fee violates the principles of excessive delegation or violates Article 19(1)(f) and (g) of the Constitution?

RULE:

A statute has to be read so as it make it valid and any interpretation leading to a contrary position should be avoided by Courts.

A tax is a compulsory contribution to government revenue, imposed without specific services or benefits in return.

A fee is charged for specific services rendered to the payer, and there should be a correlation between the fee and the cost of the service.

The legislature may delegate authority to a subordinate body to fix taxes or fees, but the delegation must be accompanied by clear guidance or principles to prevent arbitrary or excessive delegation of legislative functions.

Articles 19(1)(f) and (g) of the Constitution guarantee the right to practice any profession or carry on any trade, subject to reasonable restrictions imposed by law in the public interest.

ISSUE:

Whether Section 3(1) of the Muslim Women (Protection of Rights on Divorce) Act, 1986, is consistent with Articles 14, 15, and 21 of the Indian Constitution?

Whether the Muslim Women (Protection of Rights on Divorce) Act, 1986, is constitutionally valid?

RULE:

When interpreting courts should prefer a construction that upholds a statute’s validity and avoids rendering it ultra vires or unconstitutional. This principle is grounded in the presumption that the Legislature does not intend to enact laws that violate constitutional provisions.

Section 125 of the CrPC provides for maintenance for women (including divorced women), ensuring they are not left without financial support. Maintenance can be granted beyond the iddat period if necessary.

Muslim Women (Protection of Rights on Divorce) Act, 1986 limits the maintenance obligation of the husband to the iddat period, during which the wife is entitled to maintenance from her husband.

ISSUE:

Whether a firm is a separate assessable entity for the purpose of the Indian Partnership Act or whether it is only a compendious term used to denote a group of partners?

Whether a firm can be assessed for sales tax after its dissolution?

RULE:

Courts while interpreting a fiscal statute cannot proceed to make good if there are any the deficiencies in the statute. In a case of doubt, it should interpret it in a manner favourable to the taxpayer.