'Highly Misconceived': Delhi High Court Dismisses PIL To Impose Tax On Agricultural Income

The Delhi High Court on Wednesday dismissed a public interest litigation seeking imposition of tax on agricultural income of citizens in the national capital.

A division bench comprising Chief Justice DK Upadhyaya and Justice Tejas Karia rejected the plea calling it “highly misconceived.”

The Court remarked that it cannot issue a mandamus upon the Delhi Government to make a law imposing tax on agricultural income.

"We cannot issue a mandamus asking them to legislate," it said.

The PIL was filed by one Aakash Goel who contended that there was a “continued blanket exemption” of agricultural income from taxation for residents in Delhi.

According to him, the "continued inaction” of the Delhi Government in addressing the “misuse of exemption” has resulted in fiscal inequality and arbitrary classification among taxpayers.

“The Petitioner submits that such continued inaction is arbitrary, discriminatory, and violative of Articles 14, 38 and 265 of the Constitution of India, as it permits a narrow class of high-income individuals to remain outside the tax framework, while salaried professionals, traders, and other citizens are subjected to full taxation,” the plea said.

It prayed that the matter be placed before the competent authority so that legislative measures be taken relating to taxation of high-income agricultural earnings.

Goel said that the alleged failure of the Delhi Government to take any effective legislative or policy measures constituted are resulting in “continued fiscal imbalance and unequal treatment among taxpayers.”

He said that despite his representation requesting for legislative measures for taxation of high agricultural income in Delhi, followed by a reminder representation, no action was taken by the authorities.

Title: Aakash Goel v. GNCTD