Senior counsel Arvind Datar, appearing for the petitioner, submitted that the amendments made to the Income Tax Act, 1961, overrule judgments of the Supreme Court and various high courts, thereby violating the constitutional principle of separation of powers between the judiciary and the executive.

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Tamil Nadu
Income Tax Act amendments: Madras HC issues notice to centre
The petition sought declaration of certain sections of the Finance Act, 2026, which introduced amendments to the Income Tax Act, 1961, as unconstitutional.
Madras High Court.
Madras High Court.(File Photo)
Express News Service
Updated on:
16 Jun 2026, 7:48 am
2 min read
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CHENNAI: The Madras High Court has ordered notice to the union government and the Central Board of Direct Taxes (CBDT) on a petition challenging the constitutional validity of certain sections of the Finance Act, 2026, through which amendments were made to the Income Tax Act, 1961.

The first division bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan directed the respondents to file a counter-affidavit in four weeks on the petition filed by the Revenue Bar Association. The bench also directed the association to file its reply to the counter-affidavit within two weeks, and adjourned the matter to July 21.

The petition sought declaration of Sections 4, 8, 9, 12, 13, 32 and 33 of the Finance Act, 2026, which introduced amendments to the Income Tax Act, 1961, as unconstitutional. It contended that the provisions violate Articles 14, 19(1)(g), 245 and 254 of the Constitution,

Entry 82 of List I of the Seventh Schedule, and the basic structure doctrine, besides being contrary to law laid down by the Supreme Court and high courts. The amendments challenged by the petitioner relate to the dispute resolution mechanism, limitation for completing assessment, reassessment, computer-based document identification numbers, and recomputation proceedings.

Senior counsel Arvind Datar, appearing for the petitioner, submitted that the amendments made to the Income Tax Act, 1961, overrule judgments of the Supreme Court and various high courts, thereby violating the constitutional principle of separation of powers between the judiciary and the executive.

He said the amendments brought in with retrospective effect will adversely impact the stability and predictability of the tax regime, and the repeated use of amendments to override judicial interpretation is contrary to the principles of tax certainty.