2015 (11) TMI 1814 - HC - Income Tax

Validity of Section 234E - HELD THAT - As considered by the Bombay High Court as well as Karnataka High Court and answered against the petitioner. The said provision has been held to be intra-vires to the Constitution. He, however, submits that the provision is given prospective effect by the Department, in view of the amendment in the Act w.e.f. 1.6.2015. In that case, petitioner may not pursue the matter any further. We accordingly dispose of this petition, as prayed by the petitioner. We make it clear that we are not expressing any opinion either way on the merits of the controversy regarding validity or application of the relevant provision.

Summary

The High Court of Madhya Pradesh disposed of a petition regarding the validity of Section 234E of the Income Tax Act, 1961. The petitioner's counsel acknowledged that other High Courts had upheld the provision as constitutional. The petitioner agreed not to pursue the matter further as the provision was given prospective effect from 1.6.2015. The court did not express any opinion on the merits of the controversy.