Equity and the provisions of Income Tax Law in India

Neeraj Gupta – [2021] 132 taxmann.com 112 (Article)

The literal meaning of the word ‘Equity’ is Evenness, Fairness and Justice. Fortunately, most of the ingredients of this noble concept have been enunciated in Constitution of India from where emanates authority of all the laws of the land. Examples are the Fundamental Rights bestowed upon the citizens of the Country, most important out of which are the ‘Right to Equality’ and ‘Right to Freedom'(as contained in Articles 14 to 22). It is in reverence of the concept of ‘Equity’ that Article 20 puts a bar on retrospective implementation of any criminal law.
Moreover, in case, any provision contained in any law is found to be in contravention of the principles of ‘Equity, Justice & Good Conscience’, it is liable to be struck down by the Judiciary, even if it may not be contravening such principles in ‘Letter’ but doing so in ‘Spirit’.
In the light of above, let us examine how far the principles of Equity are adhered to by the Indian Taxation Laws in general and the Income Tax Law in particular.

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