Taxation lawConstitutional basisSupreme Court of India

Bhagwan Dass Jain v Union of India

AIR 1981 Supreme Court 136419811 min read
The case in brief30-second read
Facts
The petitioner challenged a tax levy as being without proper legislative authorization under Article 265 of the Constitution.
Issue
Whether a tax can be levied without express legislative authority, and what are the constitutional constraints on taxing power.
Held
The Supreme Court reiterated that under Article 265, no tax shall be levied or collected except by authority of law. The taxing statute must clearly identify the subject of tax, the rate, and the person liable. Any ambiguity in a taxing provision must be resolved in favour of the assessee.
Principle
The power to tax is subject to constitutional limitations; a tax must be authorized by law and cannot be levied arbitrarily.
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Facts

  • The petitioner challenged a tax levy as being without proper legislative authorization under Article 265 of the Constitution.

Issue

  1. Whether a tax can be levied without express legislative authority, and what are the constitutional constraints on taxing power.

Held

  • The Supreme Court reiterated that under Article 265, no tax shall be levied or collected except by authority of law. The taxing statute must clearly identify the subject of tax, the rate, and the person liable. Any ambiguity in a taxing provision must be resolved in favour of the assessee.

Ratio decidendi

The power to tax is subject to constitutional limitations; a tax must be authorized by law and cannot be levied arbitrarily.

Exam use

How to use it in an answer

Cite as authority: "The power to tax is subject to constitutional limitations; a tax must be authorized by law and cannot be levied arbitrarily." (Bhagwan Dass Jain v Union of India, 1981).

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Citation

Bhagwan Dass Jain v Union of India AIR 1981 Supreme Court 1364

Reported: AIR 1981 Supreme Court 1364. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.