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PETITIONER: PANNALAL BINJRAJ
Vs.
RESPONDENT: UNION OF INDIA.
DATE OF JUDGMENT: 21/12/1956
BENCH: BHAGWATI, NATWARLAL H. BENCH: BHAGWATI, NATWARLAL H. JAGANNADHADAS, B. AIYYAR, T.L. VENKATARAMA SINHA, BHUVNESHWAR P. DAS, S.K.
CITATION: 1957 AIR 397 1957 SCR 233
ACT: Income-tax-Transfer of cases-Discretion vested in the Com- missioner or the Board,if discriminatory and violative of fundamental rights-Omnibus wholesale order of transfer, if constitutionally valid-Indian Income-tax Act(XI of 1922), as amended by Amending Act XXVI of 1956, ss. 5(7A), 64(1), (2)- Constitution of India, Arts.I4, 19(1)(g).
HEADNOTE: These petitions on behalf of the assessees raised the common question as to the constitutionality of s. 5(7-A) of the Indian Income-tax Act, which was raised but not decided by this Court in Bidi Supply Co. V. The Union of India, (1956) S. C. R. 267. Reliance was placed on the observations of Bose, J. in his Minority judgment in that case and it was contended that the section read with the explanation, subsequently added to it as a result of that decision,conferred arbitrary and uncontrolled powers of transfer on the Income-tax Commissioner and the Central Board of Revenue, was discriminatory and violative of the provisions of Art. 14 and imposed an unreasonable restriction on the right to carry on trade or business ...