New Delhi: The Supreme Court today declared as unconstitutional the National Tax Tribunal Act under which a tribunal was set up to decide tax-related cases by taking away jurisdiction of high courts in such matters.
A five-judge constitution bench headed by Chief Justice R M Lodha said that the Act passed by Parliament in 2005 is “unconstitutional” as the National Tax Tribunal (NTT) encroaches upon the power of higher judiciary, which can only decide issues involving substantial laws and not a tribunal.
The apex court passed the order on a batch of petitions challenging the constitutional validity of NTT contending that there was a grave danger that judiciary will be substituted by a host of quasi-judicial tribunals which function as departments of various ministries.
The petitions, filed by Madras Bar Association and others, had challenged a quasi-judicial body deciding “substantial questions of law” in appeal. Section 260A of the Income Tax Act sought to lay down that substantial questions of law will be decided by the NTT instead of the high court.
Bureau Report
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