1953 (12) TMI 3 - SUPREME COURT

Whether Rajasthan became taxable territory during the financial year in this case, i.e., 1949-50?

Whether the petitioner must be held to be immune from liability to assessment on the income of that year?

Held that:- The difference in the constitutional position which previously existed between the Provinces and the acceding States has thus disappeared except, of course, in regard to matters in which such distinction has been preserved by the Constitution itself, e. g., by Article 238 and Article 371. It follows that the amendment of Section 2, clause (14-A), of the Indian Act by the Finance Act, 1950, so as to authorise the levy of tax on income accruing in the territory of Rajasthan in the year 1949-50, is within the competence of Parliament and therefore valid.