https://www.taxtmi.com/caselaws?id=358096 The court upheld the constitutional validity of Section 40(3) of the Finance Act, 1983, dismissing the petition challenging its arbitrariness and violation of Article 14. The court found the legislative classification reasonable in taxing immovable properties owned by closely held companies, even if acquired from profits. Notices issued under the Wealth Tax Act, 1957, based on Section 40(3), were upheld as valid. The petition was dismissed, allowing respondents to proceed with assessments, penalties, and prosecutions, emphasizing the legislative aim to prevent tax avoidance. en-us Mon, 02 Apr 2018 00:00:00 +0530 Thu, 31 May 2018 15:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=358096 The court upheld the constitutional validity of Section 40(3) of the Finance Act, 1983, dismissing the petition challenging its arbitrariness and violation of Article 14. The court found the legislative classification reasonable in taxing immovable properties owned by closely held companies, even if acquired from profits. Notices issued under the Wealth Tax Act, 1957, based on Section 40(3), were upheld as valid. The petition was dismissed, allowing respondents to proceed with assessments, penalties, and prosecutions, emphasizing the legislative aim to prevent tax avoidance. Case-Laws Wealth-tax Mon, 02 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=358096