SC dismisses Petition Seeking ITR Mandatory for Car Purchase and Levy of Cess on Second Car [Read Order]

The Supreme Court of India has recently dismissed a petition seeking mandating Income Tax Returns (ITRs) for purchase of cars for personal use and introduction of cess levy on purchase of a second car.

The two-judge bench of the Chief Justice Dr Dhananjaya Y Chandrachud and Justice Pamidighantam Sri Narasimha, upon hearing the counsel, disposed of the petition, holding that “The issues which are raised in the petition under Article 32 of the Constitution of India in the present case pertain to the policy domain. Hence, we are not inclined to entertain the Petition.”

The petitioner, Tsunami on Roads, a Registered Non-Governmental Organization, had sought the following reliefs in the writ petition :–

1. Pass an order to respondents to ensure effective income tax regulation on sale of personal cars in order to prevent misuse of tax regulations like:
   1.  In addition to the PAN card, a copy of the last Income Tax Return (ITR) filed should be made mandatory for purchasing a personal car.
   1. Withdraw tax benefit for second car to companies or professionals.
2. Allow only one personal car per person or allow a second car only after imposing some environment CESS.
3. Considering air pollution a Pan India disease in an epidemic form, Issue a writ of mandamus under Article 226 of constitution of India to direct the respondents to initiate an effective National Program against air pollution in order to get special attention, priority and better coordination amongst States and Centre with better utilization of budget, etc.
4. Pass an order to health authorities to release some advisories for vulnerable class i.e. pregnant ladies regarding "what to do & what not to do" to safeguard themselves from air pollution.

At this instance, the Apex Court observed that the issues raised remain in the policy domain, which is a matter of the legislature and not the judiciary.

Thus, in line with the separation of powers, the Supreme Court dismissed the writ petition, saving the liberty of petitioners to pursue their grievances before the authorities in accordance with law.

To Read the full text of the Order CLICK HERE

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