The Supreme Court recently decided to postpone the hearing of Serum Institute of India's plea challenging a 2016 amendment to the Income Tax Act until May 17. In addition to contesting the amendment, the plea also challenges a previous ruling by the Bombay High Court that dismissed the company's petition on the issue.
The legal dispute stems from a 2016 amendment to Section 2(24) of the Income Tax Act, specifically involving the insertion of sub-clause (xviii) under the Finance Act, 2015, which pertains to the definition of 'income'. The Bombay High Court's order on December 4, 2023, rejected Serum Institute's petition on this matter, emphasizing that the higher tax burden on the company does not render the legal provision invalid. This decision underscores the court's interpretation of the constitutional protection of the right to trade under Article 19(1)(g) as distinct from the protection of the right to profit.
During the recent court session, the bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra of the Supreme Court chose to adjourn the proceedings as senior advocate Arvind P Datar, representing Serum Institute, requested more time to present arguments. The postponement indicates that the case remains unresolved and will be revisited at a later date for further deliberation and legal discourse.