SC to hear Serum’s plea challenging amendment to IT Act on May 17

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2 min read Last Updated : May 06 2024 | 9:43 PM IST


The Supreme Court on Monday adjourned until May 17 vaccine manufacturer Serum Institute of India’s (SII) plea challenging a 2016 amendment to the Income Tax Act.


With this plea, it also challenged the Bombay High Court’s order that dismissed its petition against a 2016 amendment to the Income Tax Act.


The December 4, 2023, order of the Bombay High Court rejected its petition against a 2016 amendment to Section 2(24) by the insertion of sub-clause (xviii) under the Finance Act, 2015, which deals with the definition of ‘income’.

The amendment made subsidies, grants, waivers, concessions, reimbursements by the Centre or states, or incentives in cash or kind taxable. SII has argued that these are not taxable.


The High Court stated that the mere fact that the imposition of tax by virtue of a sub-clause falls more heavily on the petitioner does not invalidate the legal provision.


“The Constitution safeguards the right to trade under Article 19(1)(g) but does not extend this protection to the right to profit,” the High Court had said.


A bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra of the apex court deferred the matter on Monday after senior advocate Arvind P Datar, representing the company, sought more time to argue.

First Published: May 06 2024 | 9:37 PM IST