{"id":2760,"date":"2011-03-01T22:04:11","date_gmt":"2011-03-01T16:34:11","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=2760"},"modified":"2011-03-01T22:04:11","modified_gmt":"2011-03-01T16:34:11","slug":"gvk-industries-ltd-vs-ito-supreme-court-5-judge-bench-s-91vii-parliaments-power-to-make-laws-with-extra-territorial-effect","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/gvk-industries-ltd-vs-ito-supreme-court-5-judge-bench-s-91vii-parliaments-power-to-make-laws-with-extra-territorial-effect\/","title":{"rendered":"GVK Industries Ltd vs. ITO (Supreme Court – 5 Judge Bench)"},"content":{"rendered":"\n\n
Click here to download the judgement (gvk_s_9_extra_territorial.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n


\nS. 9(1)(vii) & Parliament’s power to make laws with extra-territorial effect
\n<\/strong><\/p>\n

The copy now available (02.03.2011 @ 18.30 hrs) is a better copy. Please re-download if you downloaded earlier)\n <\/div>\n

The assessee filed a Writ Petition in the AP High Court to challenge the constitutional validity of s. 9(1)(vii)(b). The High Court (228 ITR 564<\/a>) upheld the vires of s. 9(1)(viii)(b) by relying on Electronics Corporation of India Ltd vs. CIT<\/strong> 183 ITR 44 (SC). On appeal to the Supreme Court, the matter was referred to a Constitutional Bench<\/strong> to determine the extent to which laws enacted by Parliament can have extra-territorial effect under Article 245. HELD by the Constitution Bench:<\/p>\n

(i) Parliament is constitutionally restricted<\/strong><\/em> from enacting legislation with respect to extra-territorial aspects or causes that do not have, nor expected to have any, direct or indirect, tangible or intangible impact(s) on or effect(s) in or consequences for: (a) the territory of India, or any part of India; or (b) the interests of, welfare of, well-being of, or security of inhabitants of India, and Indians. In all other respects, Parliament may enact legislation with extra-territorial effect. This power is not subject to tests of “sufficiency” or “significance” or in any other manner requiring a pre-determined degree of strength. All that is required is that the connection to India be real or expected to be real, and not illusory or fanciful<\/em><\/strong>. <\/p>\n

(ii) However, Parliament does not <\/strong>have the power to legislate “for” any territory, other than the territory of India or any part of it. Parliament can only make laws for India and any law which has no impact on or nexus with India would be ultra-vires<\/em><\/strong>. <\/p>\n","protected":false},"excerpt":{"rendered":"

Parliament is constitutionally restricted<\/strong><\/em> from enacting legislation with respect to extra-territorial aspects or causes that do not have, nor expected to have any, direct or indirect, tangible or intangible impact(s) on or effect(s) in or consequences for: (a) the territory of India, or any part of India; or (b) the interests of, welfare of, well-being of, or security of inhabitants of India, and Indians. In all other respects, Parliament may enact legislation with extra-territorial effect. This power is not subject to tests of “sufficiency” or “significance” or in any other manner requiring a pre-determined degree of strength. All that is required is that the connection to India be real or expected to be real, and not illusory or fanciful<\/em><\/strong><\/p>\n

Read more ›<\/a><\/div>\n

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