_page-0001.jpg)
What's the article about?
- It talks about the issue of judicial overreach due to the SC’s recent judgements pertaining to some tax laws.
Relevance:
- GS2: Structure, Organization and Functioning of the Executive and the Judiciary;
- Essay;
- Prelims
Context:
- Recently, in two different judgements, the SC believed that the parliament had overstepped its power to legislate on taxation.
- The writer of this article explains how these judgements are examples of judicial overreach.
- For our examination, facial information about these two laws related to taxes holds no importance. However, the philosophy of judicial overreach is important for our exam.
Theory of separation of powers:
- Indian Constitution provides for the separation of powers between three organs of the modern state – Executive, Legislative and Judiciary.
- Every organ is supreme in its own sphere, and it is ideal for them not to intervene in the spheres of others.
- However, due to exceptional circumstances, this ideal of separation of powers is not maintained.
- There have been instances where the judiciary has intervened in the legislative and executive spheres.
- These interventions are sometimes necessary, and other times they are considered transgressions by other two organs. (Judicial Activism, Restraint & Overreach).
Judicial Activism, Restraint and Overreach:
- Judicial activism signifies the proactive role of the Judiciary in protecting the rights of citizens. The practice of Judicial Activism first originated and developed in the USA.
- Judicial Restraint is the antithesis of Judicial Activism. Judicial Restraint is a theory of judicial interpretation that encourages judges to limit the exercise of their own power.
- When Judicial Activism goes overboard, and becomes Judicial Adventurism, it is referred to as Judicial Overreach.
- In simpler terms, it is when the judiciary starts interfering with the proper functioning of the legislative or executive organs of the government.
- Judicial Overreach is undesirable in a democracy as it breaches the principle of separation of powers.
Analysis:
- Basis of the Indian Taxation system:
- India’s law of taxation is built on two central precepts.
- First, on the idea captured in Article 265 of the Constitution, that a tax may be imposed only with the authority of law.
- Second, on a principle of sureness, that any levy ought to be clear, consistent, and predictable.
- Both these precepts emanate out of a larger commitment to the rule of law, in particular to values of legality and certainty.
- Judicial overreach:
- In two cases: ITO vs Vikram Sujitkumar Bhatia and Union of India vs Ashish Agarwal, the SC interpreted the provisions of the Income Tax Act, 1961.
- Through these judgments, it is believed that the SC is encroaching on legislative functions.
- Moreover, the SC used its extraordinary power – Article 142 of the Constitution – which allows it to pass orders for “doing complete justice to a cause”.
Way Forward:
- Article 265 of the Constitution forbids taxation without legislation. But if the Supreme Court is willing to play Parliament, this peremptory promise will remain illusory.
