https://www.taxtmi.com/caselaws?id=208683 Section 3AA of the Punjab State Legislative Assembly (Salaries and Allowances of Members) Act, 1942 was examined against legislative competence and Article 14. The provision did not levy income-tax, alter the Union taxing field, or exempt Members of Legislative Assembly from tax; it only required the State Government to bear the tax payable on their salaries and allowances. Applying pith and substance, any incidental overlap with income-tax did not invalidate the measure, and the State law was not beyond competence. The classification was also upheld because it rested on a rational basis and merely shifted the payment burden without creating unconstitutional discrimination. The challenge therefore failed on both grounds. en-us Mon, 09 Aug 2010 00:00:00 +0530 Tue, 18 Dec 2012 10:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=208683 Section 3AA of the Punjab State Legislative Assembly (Salaries and Allowances of Members) Act, 1942 was examined against legislative competence and Article 14. The provision did not levy income-tax, alter the Union taxing field, or exempt Members of Legislative Assembly from tax; it only required the State Government to bear the tax payable on their salaries and allowances. Applying pith and substance, any incidental overlap with income-tax did not invalidate the measure, and the State law was not beyond competence. The classification was also upheld because it rested on a rational basis and merely shifted the payment burden without creating unconstitutional discrimination. The challenge therefore failed on both grounds. Case-Laws Indian Laws Mon, 09 Aug 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=208683