Bhagwan Dass Jain v Union of India
Rule established
The power to tax is subject to constitutional limitations; a tax must be authorized by law and cannot be levied arbitrarily.
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.
Ratio Decidendi
The power to tax is subject to constitutional limitations; a tax must be authorized by law and cannot be levied arbitrarily.
How to use it in an exam
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).
Source
Source: AIR 1981 Supreme Court 1364
This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.