Category: Legislative Competence

ISSUE:

Whether a Foreign company can be taxed in India under Indian laws?

Whether Sections 3,4, 4A, and 64 of the Indian Income-tax Act, 1922-1939, are valid by virtue of which there was made on the appellant company an assessment to income-tax on income which included income arising without British India?

Whether a particular Income-tax Officer have the jurisdiction to make that assessment?

RULE:

The general conception as to the scope of the legislative practice in the United Kingdom with regard to income tax is that given a sufficient territorial connection between the person sought to be charged and the country seeking to tax him income tax may properly extend to that person in respect of his foreign income. That general conception, both on a consideration of the British legislation and the Government of India Act, 1935, finds a place in the phrase “taxes on income” as used in that Act and the principle of sufficient territorial connection is implicit in the power conferred by the Government of India Act, 1935.

ISSUE:

Whether the Act extends to trust assets located outside of Bihar?

Can the Bihar legislature pass a legislation related to a trust located in Bihar and other assets belonging to the same trust that are located outside of Bihar?

RULE:

The Doctrine of Territorial Nexus argues that laws enacted by a state legislature are only effective inside the state's territorial boundaries unless there is a substantial connection between the Object and the State.

ISSUE:

Does the Bengal Moneylenders Act, which was passed by the State Legislatures, have Constitutional validity?

RULE:

According to the Pith and Substance theory of Constitutional law, when a Court must decide whether a law applies to a topic that is mentioned in one list or another, it must first consider the topic at hand.

ISSUE:

Whether Sections 302 and 307 read with Section 149 of the Indian Penal Code, 1860 can be converted into one under Sections 302 and 307 read with Section 34 of the Indian Penal Code, 1860?

RULE:

The acts carried out by multiple people for a shared goal are defined in Section 34(2) of the Indian Penal Code. According to this, any member of a group who engages in illegal conduct with the same motives and goals is held equally responsible for the crime as if it were committed by one person alone.

ISSUE:

Whether the subject matter of the impugned legislation was competently enacted under Article 246 of the Constitution of India?

RULE:

According to the Pith and Substance Theory of Constitutional law, when a Court must decide whether a law applies to a topic that is mentioned in one list or another, it must first consider the topic at hand.

ISSUE:

Whether the Parliament is legally limited from making laws on extra-territorial features or causes that have no direct or indirect, physical or intangible impact on any area of India, Indians' interests, welfare, well-being, and security?

Can the Parliament have the power to legislate "for" a region other than India or a part of it?

RULE:

The Parliament of India has the authority to legislate on matters that extend beyond India's borders so long as there is some connection to the country. The Parliament's authority to legislate under Clause (1) of Article 245 of the Constitution of India may not extend to extraterritorial characteristics or causes that have no bearing on or connection to India.

Article 51 of the Constitution of India affirms India's commitment to preserving "just and honourable relations" by encouraging adherence to the treaty and international responsibilities. It is one thing to state that Parliament may pass legislation about extraterritorial issues or causes since they affect or have a connection to India.

ISSUE:

Whether any attempt to impose a tax on the first sales of products made or produced in India in Madras would be outside the scope of the Respondent's legislative authority and ultra vires?

RULE:

The Madras General Sales Tax Act, 1939 levies a tax on the sale of products, which is its “Pith and Substance.” It can only be accurately described as a “tax on the selling of products”.

ISSUE:

Whether the state legislature is competent to enact the Oriental Gas Company Act, 1960?

RULE:

Entry 24 and 25 in the state list says that the State legislature has exclusive power to pass laws relating to "industries subject to the provisions of entries 7 and 52 of List and Gas and gas-works" respectively. Entry 24 needs to read along with Entry 7 and 52 of the list.

Entry 52 of the state lists includes "Taxes on the entry of goods into a local area for consumption, use or sale therein."

ISSUE:

Whether the Tobacco Board Act enacted by the Parliament under Entry 52 of List I can be held to be constitutionally valid and within the legislative competence of the Parliament?

Can both the Acts, namely the tobacco board act and the Agricultural Produce Market Act, be allowed to operate?

If there is a repugnancy between the two, then whether the Central Act would prevail?

RULE:

Entry 52 of the Union List says that the Union can legislate on “Industries, the control of which by the Union is declared by Parliament by law to be expedient in the public interest.”

ISSUE:

Whether the Armed Forces [Special Powers] Act and the Assam Disturbed Areas Act, 1955, unconstitutional?

Whether by conferring itself the power to declare an area as a "disturbed area", the centre is legislating on the matter of public order, which has been mentioned as an entry under the State List.

RULE:

Article 248 of the Constitution states that the parliament has exclusive power to make any law with respect to any matter not enumerated in the Concurrent List or State List.

Moreover, by the 42nd amendment, Entry 2A was added to the Union lists, which is as follows- "deployment of any armed force of the Union or any other force subject to the control of the Union or any contingent or unit thereof in any state in aid of the civil power, powers, jurisdiction, privileges and liabilities of the members of such forces while on such deployment."

Public order has been mentioned as an entry in the state list.