2003 (7) TMI 64 - HC - Income Tax

Agricultural Income-Tax 1939 - main grievance of the writ petitioners is in respect of the detention of the vehicles carrying tea at inter-State check posts on the ground of non-production of the agricultural income-tax clearance certificate under section 47A of the Agricultural Income-tax Act 1939 (as amended). The challenge to the constitutional validity of the provisions of section 47A of the Act as well as the circular dated September 13 2000 issued by the Commissioner has been made - It would be wholly unnecessary for the court to go into the question of constitutional validity of section 47A or the legality of the notification dated September 13 2000. Instead this court is inclined to take the view that having regard to the facts stated above it would be more appropriate to close this bunch of writ petitions by holding that under the provisions of the Assam Agricultural Income-tax Act 1939 as in force there is no power vested in the authority to detain vehicles for non-production of tax clearance certificates under section 47A of the Act and any such detention if made would be illegal ultra vires and without authority of law.

Summary

The High Court of Gauhati ruled that there is no legal authority to detain vehicles carrying tea for not producing tax clearance certificates under section 47A of the Assam Agricultural Income-tax Act, 1939. Any such detention is deemed illegal and without authority of law. The writ petitions challenging the detention were answered in favor of the petitioners.