Judgement

NARASIMHAM, C.J. :- In these three references under Section 27(1) of the Wealth Tax Act 1957, the main question for consideration is the constitutional validity of the Wealth Tax Act (hereinafter referred to as the Act). In reference No. 42 of 1962 which deals with assessment to Wealth Tax for the year 1957-58 the further question for decision by this Court is whether the Act could have limited retrospective effect so as to apply to the wealth of an assessee for the previous year.

2. The Act was passed by Parliament and brought into force with effect from 1-4-1957. The statement of Objects and Reasons (see Gazette of India Extraordinary dated 28th March 1957, Part II, Section 2, page 132) reveals that the object of the Act is to impose an annual tax on the net wealth of individuals, Hindu Undivided families and companies.

"The Wealth Tax is an important constituent of an integrated tax structure which the Government have been aiming at for sometime and it is consistent with the avowed goal of the attainment of a socialistic pattern of society."

This goal appears to have been aimed at with a view to implement Article 39(c) of the Constitution which seeks to prevent concentrati