High Court directs parties to abide by Supreme Court decision on Income Tax Act challenge, prevents limitation plea.

The High Court disposed of the Writ Petition challenging the constitutionality of certain sections of the Income Tax Act and Rules by directing both parties to abide by the Supreme Court's decision on a similar matter. The Court issued an order to prevent the petitioner from pleading limitation for actions taken during the pending period until the Supreme Court's final decision, safeguarding the Revenue's interests. The Writ Petition was disposed of without costs, ensuring compliance with the Supreme Court's ruling on the challenged provisions.

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Issues:
Challenge to the constitutionality of Sections 115 WA to WL of the Income Tax Act, 1961 and the Income Tax Rules, 1994 by a petitioner association.

Analysis:
The petitioner filed a Writ Petition seeking a declaration to declare certain sections of the Income Tax Act and Rules as ultra vires Articles 14, 19(1)(g) of the Constitution of India and beyond the legislative competence of Parliament concerning the petitioner association. Both the petitioner's counsel and the Revenue's counsel acknowledged that a similar matter is pending before the Hon'ble Supreme Court, which has been transferred from other High Courts as well.

Considering the matter's current status before the Supreme Court, the High Court decided to dispose of the Writ Petition with appropriate directions, allowing both parties to follow the Supreme Court's decision. The Revenue's counsel expressed concerns about the petitioner later claiming actions are barred by limitation if the Supreme Court upholds the legislation. To address this, the Court issued an order directing the petitioner to abide by the Supreme Court's decision and clarified that if the impugned legislation is upheld, the petitioner cannot plead limitation for actions taken during this period.

Ultimately, the High Court disposed of the Writ Petition without costs, ensuring the petitioner and the Revenue abide by the Supreme Court's decision regarding the challenged provisions. The Court's order aimed to safeguard the Revenue's interests in case actions are taken based on the impugned legislation upheld by the Supreme Court, preventing the petitioner from pleading limitation during the pending period and until the Supreme Court's final decision.

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