https://www.taxtmi.com/caselaws?id=16365 The dominant issue was the constitutional validity of Income-tax Act s.158BD (block assessment of undisclosed income of a person other than the searched person) as violating Arts. 14, 19(1)(g), and 21. The HC held that Chapter XIV-B creates a special, efficient machinery necessitated by difficulties in attributing undisclosed income to specific previous years; the classification of persons whose undisclosed income is detected in search cases rests on an intelligible differentia with a rational nexus to the statutory object, and the flat tax under s.113 is a corollary of treating such income as a separate class, negating any Art. 14 infirmity. It further held s.158BD is a taxing procedure, not an unreasonable restraint on business under Art. 19(1)(g), and does not implicate life or personal liberty under Art. 21. The petitions were dismissed. en-us Thu, 15 Oct 1998 00:00:00 +0530 Thu, 18 Dec 2025 14:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16365 The dominant issue was the constitutional validity of Income-tax Act s.158BD (block assessment of undisclosed income of a person other than the searched person) as violating Arts. 14, 19(1)(g), and 21. The HC held that Chapter XIV-B creates a special, efficient machinery necessitated by difficulties in attributing undisclosed income to specific previous years; the classification of persons whose undisclosed income is detected in search cases rests on an intelligible differentia with a rational nexus to the statutory object, and the flat tax under s.113 is a corollary of treating such income as a separate class, negating any Art. 14 infirmity. It further held s.158BD is a taxing procedure, not an unreasonable restraint on business under Art. 19(1)(g), and does not implicate life or personal liberty under Art. 21. The petitions were dismissed. Case-Laws Income Tax Thu, 15 Oct 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16365