Legal series 11

Constitutionality of Section 94A(1) of the Income Tax Act, 1961, upheld
Madras High Court: 

In the present case where questions were raised on the constitutionality of Section 94A(1) of the Income Tax Act, 1961 on the ground that the impugned provision contravenes Articles 14, 19, 51, 253 and 265 read with Entry 82 of List 1 of VII Schedule of the Constitution and is beyond the legislative competence of Parliament under Articles 246 and 248 read with Entry 10, 14, 82 and 97 of List 1 of VII Schedule of the Constitution, the Division Bench of V. Ramasubramanian and T. Mathivanan, JJ., upheld the constitutionality of Section 94A (1) of the Income Tax Act stating that in the present times when scams like Panama Leaks are being revealed, the provisions related to tax avoidance are the need of the hour.

[T. Rajkumar v. Union of India, 2016 SCC OnLine Mad 2001, decided on 12.04.2016]