Dhanalakshmi Srinivasan Sugars Private Limited, Represented by its Managing Director, Mr.S.Jegatheesan and V.V.Mineral (100% EOU), Represented by its Partner, Mr.S.Jegatheesan V. Union of India, Represented by its Secretary, Ministry of Finance, Department of Revenue and The Central Board of Direct Taxes, Represented by its Chairperson, Department of Revenue \\u2013 Ministry of Finance, Government of India and Interim Board for Settlement, Represented by its Secretary, Replacing the Income Tax Settlement Commission, Additional Bench, Chennai and Assistant Commissioner of Income Tax, Central Circle- 2, Madurai

WP(MD)/10014/2021

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The case involves Dhanalakshmi Srinivasan Sugars Private Limited and V.V.Mineral (100% EOU) challenging the constitutional validity of certain amendments to the Income Tax Act, 1961, introduced by the Finance Act, 2021, with retrospective effect from February 1, 2021. The amendments in question pertained to various sections of the Income Tax Act, including the introduction of new sections and sub-clauses that the petitioners argued were arbitrary, illegal, and unconstitutional, infringing upon fundamental rights under Articles 14, 19(i)(g), 20, 20(2), and 21 of the Constitution of India. The Madurai Bench of the Madras High Court, however, found that the issues raised were largely addressed in a previous judgment and thus did not require re-examination.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 693754 (HC-MADURAI)
• Appeal Type: Others
• Pronouncement Date: 21-08-2024
• Assessment Year: misc
• Other Referred Cases: Jain Metal Rolling Mills v. Union of India
• Laws Referred To: Income Tax Act, 1961, Finance Act, 2021, Constitution of India, 1950
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: V MALAIYENDRAN; N DILIP KUMAR
• Assessee Lawyers: R SIVARAMAN
• Keywords: Article 14; Article 21; Constitutional Validity; Fundamental rights; Income Tax; Retrospective effect; Article 19(i)(g); Article 20; Article 20(2)
• Section: 245C; 245D; 245A; 245F; 245B; 245H; 245M; 245AA; 245BC; 245BD; 245DD; 245G

Judgement Text

"W.P.(MD) Nos.10014, 10019 and 10020 of 2021 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 21.08.2024 CORAM: THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN and THE HONOURABLE MRS.JUSTICE L.VICTORIA GOWRI W.P.(MD) Nos.10014, 10019 and 10020 of 2021 and W.M.P.(MD)No.1074, 1077 and 1079 of 2024 Dhanalakshmi Srinivasan Sugars Private Limited, Represented by its Managing Director, Mr.S.Jegatheesan, 17, Keeraikaranthattu Tisayanvillai, Tirunelveli – 627 657. ... Petitioner in W.P.(MD)No.10014 of 2021 V.V.Mineral (100% EOU) Represented by its Partner, Mr.S.Jegatheesan, 17, Keeraikaranthattu Tisayanvillai, Tirunelveli – 627 657. ... Petitioner in W.P.(MD)Nos.10019 and 10020 of 2021 -vs- 1.Union of India, Represented by its Secretary, Ministry of Finance, Department of Revenue, 3rd Floor, Jeevan Deep Building, Sansad Marg, New Delhi – 110001. 2.The Central Board of Direct Taxes, Represented by its Chairperson, Department of Revenue – Ministry of Finance, Government of India, New Delhi. 3.Interim Board for Settlement, ____________ Page 1 of 5 https://www.mhc.tn.gov.in/judis W.P.(MD) Nos.10014, 10019 and 10020 of 2021 Represented by its Secretary, Replacing the Income Tax Settlement Commission, Additional Bench, Chennai, Represented by its Secretary, Satguru Complex, 640, Anna Salai, Nandanam, Chennai – 600035. 4.Assistant Commissioner of Income Tax, Central Circle- 2, Madurai. ... Respondents in all W.Ps. COMMON PRAYER: Petition filed under Article 226 of the Constitution of India, to issue a Writ of Direction, declaring the amendment to the Income Tax Act, 1961, in Section 245A by inserting sub clause (da), (ea) and (eb), 245B, 245BC, 245BD, proviso to 245C, 245D, 245DD, 245F, 245G, 245H and Insertion of new Section 245AA and 245M by way of Sections 54 to 65, Finance Act, 2021, with retrospective effect from 01.02.2021 as arbitrary, illegal and void and infringing the fundamental rights conferred under Article 14, 19(i)(g), 20, 20(2) and 21 of Constitution of India, 1950, thus enforceable and unconstituional. For Petitioner : Mr.R.Sivaraman (in all cases) For 1st Respondent : Mr.V.Malaiyendran (in all cases) Central Government Standing Counsel For Respondents 2 to 4 : Mr.N.Dilipkumar (in all cases) Standing Counsel C O M M O N O R D E R [Order of the Court was made by R.SUBRAMANIAN, J.] Mr.V.Malaiyendran, learned Central Government Standing Counsel takes notice for the first respondent and Mr.N.Dilipkumar, learned Standing Counsel takes notice for the respondents 2 to 4. ____________ Page 2 of 5 https://www.mhc.tn.gov.in/judis W.P.(MD) Nos.10014, 10019 and 10020 of 2021 2.Challenge in these Writ Petitions is to the Constitutional validity of certain provisions of the Income Tax Act, 1961. 3.The issue is no longer res integra. The Hon'ble Division Bench of this Court in Jain Metal Rolling Mills v. Union of India in W.P.Nos.13455 of 2023, batch, has upheld that the provision, of course, subject to certain exceptions and the provisions has been read down. Therefore, the larger issue in these Writ Petitions does not survive. The Writ Petitions are disposed of in terms of judgment of the Hon'ble Division Bench in Jain Metal Rulings case. 4.Mr.R.Sivaraman, learned counsel appearing for the petitioners would however contend that the assessment orders passed would not survive, since the petitioners have approached the Settlement Commission. It is open to him to urge the said contention before the learned Single Judge where the rejection by the Settlement Commission is being questioned. No costs. Consequently, connected miscellaneous petition are closed. [R.S.M., J.] [L.V.G., J.] 21.08.2024 NCC : No Index : No Internet : Yes Mrn/Sml ____________ Page 3 of 5 https://www.mhc.tn.gov.in/judis W.P.(MD) Nos.10014, 10019 and 10020 of 2021 To 1.Secretary, Union of India, Ministry of Finance, Department of Revenue, 3rd Floor, Jeevan Deep Building, Sansad Marg, New Delhi – 110001. 2.The Central Board of Direct Taxes, Represented by its Chairperson, Department of Revenue – Ministry of Finance, Government of India, New Delhi. 3.Interim Board for Settlement, Represented by its Secretary, Replacing the Income Tax Settlement Commission, Additional Bench, Chennai, Represented by its Secretary, Satguru Complex, 640, Anna Salai, Nandanam, Chennai – 600035. 4.Assistant Commissioner of Income Tax, Central Circle- 2, Madurai. ____________ Page 4 of 5 https://www.mhc.tn.gov.in/judis W.P.(MD) Nos.10014, 10019 and 10020 of 2021 R.SUBRAMANIAN , J. and L.VICTORIA GOWRI , J. Mrn/Sml W.P.(MD) Nos.10014, 10019 and 10020 of 2021 21.08.2024 ____________ Page 5 of 5 https://www.mhc.tn.gov.in/judis "