Cen­tre can’t levy tax on agri in­come, HC told

Hindustan Times (Chandigarh) - - FRONT PAGE - HT Cor­re­spon­dent

CHANDI­GARH: The Cen­tre on Mon­day told the Pun­jab and Haryana high court that it is not com­pe­tent to levy tax on agri­cul­tural in­come as the sub­ject falls un­der the purview of state gov­ern­ments.

Dur­ing the re­sumed hear­ing of a pub­lic In­ter­est lit­i­ga­tion (PIL) be­fore the divi­sion bench of jus­tices Ajay Ku­mar Mit­tal and AS Gre­wal, the Cen­tre told the court that only a state is com­pe­tent to en­act leg­is­la­tions im­pos­ing a tax on agri­cul­tural in­come.

The Tax Ad­min­is­tra­tion Re­forms Com­mis­sion, in its third re­port, had stated that the tax on agri­cul­tural in­come can be im­posed by the cen­tral gov­ern­ment only if the states pass a res­o­lu­tion un­der Ar­ti­cle 252 of the Con­sti­tu­tion of In­dia, au­tho­ris­ing the Cen­tre to im­pose such tax on agri­cul­tural in­come, the court was told.

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