CONSTITUTION OF INDIA, 1950

Article 226

Writ - Maintainability - Tax upon the interest accrued upon the award/Compensation granted by Motor Accident Claims Tribunal -

Present petition was filed for the issuance of a writ quashing section 194 A(3) (ixa) of Income Tax Act, 1971 which mandates to deduct tax upon the interest accrued upon the award/Compensation granted by Motor Accident Claims Tribunal (MACT) by holding the same as unconstitutional and in the direct conflict with the object and spirit of the social welfare legislation, i.e., Motor Vehicle Act, 1988. Petitioner also pleaded for setting aside the Order of the CBDT deciding the representation of the Petitioner and holding that the interest accrued upon the award is an income and the levying of tax is just, proper and reasonable. Authority stated that the petition was not maintainable as petitioner had no locus standi to file the same. Held: Settled principle of law is that an aggrieved person must approach the Court. Petitioner was a stranger having no right and/or fundamental right to any award/Compensation granted by Motor Accident Claims Tribunal (MACT). As the petitioner was not an aggrieved person, the Court was in agreement with submission advanced by authority, that the petitioner had no locus standi to maintain present petition. Standing for individuals has been relaxed by Indian Courts by entertaining public interest litigation in the event person aggrieved is too poor or does not have the means to approach the Court. Accordingly, petition was dismissed. It was clarified that petitioner may file a PIL in accordance with law in a proper format with necessary disclosures, affidavits and undertakings as prescribed.

Relied:Ghulam Qadir v. Special Tribunal & Ors. (2002) 1 SCC 33 .

REFERRED :

FAVOUR : Against the petitioner

A.Y. :

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