Income Tax Appellate Tribunal Bar Association vs Union of India (UOI)

Notice to the respondents. Since the constitutional validity of the Ordinance dated October 16, 2003, is challenged, notice to the Attorney General of India.

The petitioners have challenged the constitutional validity of the National Tax Tribunal Ordinance, 2003 (3 of 2003) on October 16, 2003, on the grounds, amongst others, that unusual and exceptional circumstances did not exist for issuance of the Ordinance, when Parliament is likely to meet in the first week of December, 2003. On the merits, it is contended that the proposal for establishing the National Tax Tribunal is being mooted since 1971, but no legislation was passed during the past 30 years, therefore, there can be no justification to pass the Ordinance. The reason that the High Courts are differing in their opinions from time to time cannot be a ground to establish the National Tax Tribunal, otherwise the High Courts are generally forming decisions following each other on questions of law. As against, the Income Tax Appellate Tribunals are differing in their decisions. The number of cases pending in the High Courts is not much nor are the High Courts passing casual stays in tax matters. Apart from this, the challenge is to the nature of the constitution of the Tribunal, the Chairman and the Members thereof, and that substantial questions of law can be decided by a court of law and not by the Tribunal is also under challenge in these petitions. Finally, Shri Mihir Thakore places before us the order of the Division Bench of the High Court of Orissa dated November 12, 2003, All India Federation of Tax Practitioners and Another Vs. Union of India (UOI) and Others, . whereby the respondents have been restrained not to issue any notification as contemplated by or u/s 3 of the Ordinance.

Looking to the challenge of the petitioners in these petitions, we are of the opinion that the respondents should be restrained till the next date of hearing from issuing any notification as contemplated by or u/s 3 of the Ordinance and we hereby direct accordingly, subject to hearing the other side on the next date of hearing.