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The Revenue Bar Association (RBA) successful Chennai has filed a writ petition successful the Madras High Court challenging the law validity of assorted provisions of the Finance Act, 2026 done which respective caller provisions had been inserted into the Income Tax (I-T) Act of 1961 with retrospective effect dating backmost arsenic aboriginal arsenic June 1, 2007.
It has urged the tribunal to state arsenic unconstitutional Sections 4,8,9,12,13,32 and 33 of the Finance Act, 2026 connected grounds of being violative of the law provisions and besides the doctrines of separation of powers arsenic good arsenic that of the basal operation propounded by the Supreme Court.
The relation has claimed the provisions were contrary to galore judicial pronouncements. Its plea has been listed for admittance earlier the archetypal Division Bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan connected Monday (June 15, 2026).
Section 4 of the 2026 Act had inserted sub-section 3AA to Section 92CA of the I-T Act and prescribed the method of calculating the play of regulation for the Transfer Pricing Officer to find the arm’s magnitude terms successful narration to planetary oregon specified home transactions. It stated that the caller sub conception would beryllium deemed to person travel into effect from June 1, 2007.
Similarly, Section 8 of the 2026 Act had inserted sub sections 4A, 4B, 13A and 13B to Section 144C of the I-T Act and prescribed the clip bounds wrong which an Assessing Officer was expected to walk the appraisal order. It besides made it wide the caller sub sections would beryllium deemed to person travel into effect from 2009.
Further, Section 9 of the Finance Act had inserted Section 147A to the I-T Act with effect from April 1, 2021. Sections 12 and 13 of the 2006 Act had inserted Sections 153(10) and 153B (1A) to the I-T Act besides with retrospective effect and Sections 32 and 33 of the Finance Act had inserted Sections 292BA and 292BC to the I-T Act with effect from October 1, 2019 and April 1, 2021 respectively.
The recently introduced Section 292BA work that “notwithstanding thing contained successful immoderate judgment, bid oregon decree of immoderate court, for the removal of doubts, it is hereby clarified for the purposes of conception 292B that nary appraisal nether immoderate of the provisions of this Act shall beryllium invalid oregon shall beryllium deemed to person been invalid connected the crushed of immoderate mistake, defect oregon omission successful respect of quoting of a machine generated Document Identification Number, if the appraisal bid is referenced by specified fig successful immoderate manner.”
The different recently introduced Section 292BC stated that “notwithstanding thing contained successful this Act oregon successful immoderate judgment, bid oregon decree of immoderate court, for the removal of doubts, it is hereby clarified that immoderate support fixed by an income-tax authorization successful narration to immoderate assessment, reassessment oregon recomputation proceedings nether this Act shall beryllium deemed to beryllium administrative and supervisory successful quality and shall not beryllium invalid oregon shall not beryllium deemed to beryllium invalid by crushed of immoderate insufficiency of the reasons recorded oregon by crushed of immoderate defect successful the signifier oregon mode of its authentication oregon connection including whether integer signature person been appended to specified support oregon not, wherever specified support is granted electronically.”
The petitioner relation contended these provisions were violative of Articles 14 (right to adjacent extortion of laws), 19(1)(g) (right to signifier immoderate assemblage oregon transportation connected immoderate occupation, commercialized oregon business), 245 (power of the Parliament to marque laws for the full oregon immoderate portion of the state and that of the Legislative Assembly of a State to marque laws for the full oregon immoderate portion of the State) and 246 (list of the taxable matters connected which the Parliament and the State legislatures could walk laws) of the Constitution.
The Association besides claimed immoderate of the provisions challenged by it were violative of Entry 82 of List I (Union list) of Schedule VII to the Constitution which prohibits the Parliament from passing laws related to levy of taxes connected cultivation income.
