https://www.taxtmi.com/caselaws?id=25240 Section 4(1)(b) of the Agricultural Income-tax Act, as amended, was upheld against an Article 14 challenge because the exemption was limited to agricultural income applied for religious or charitable purposes within the State. The territorial distinction between income spent inside the State and outside it was treated as a valid geographical classification in taxation, where the Legislature has wide discretion to grant or deny exemptions. The court found that the classification rested on intelligible differentia and had a rational nexus with the legislative object of ensuring the exemption benefited the State by encouraging local use of the income. The provision was therefore held valid. en-us Mon, 26 Oct 1987 00:00:00 +0530 Wed, 27 Jan 2010 12:59:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25240 Section 4(1)(b) of the Agricultural Income-tax Act, as amended, was upheld against an Article 14 challenge because the exemption was limited to agricultural income applied for religious or charitable purposes within the State. The territorial distinction between income spent inside the State and outside it was treated as a valid geographical classification in taxation, where the Legislature has wide discretion to grant or deny exemptions. The court found that the classification rested on intelligible differentia and had a rational nexus with the legislative object of ensuring the exemption benefited the State by encouraging local use of the income. The provision was therefore held valid. Case-Laws Income Tax Mon, 26 Oct 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25240