https://www.taxtmi.com/caselaws?id=36913 Section 217 of the Income-tax Act, 1961, was upheld as a valid fiscal levy because the differentiation between new assessees and assessees already served with notice under section 210 was held to be based on an intelligible differentia with a rational nexus to the statutory object. The Court applied Article 14 reasonable classification principles and held that the absence of interest for one class did not make the levy on the other class discriminatory. Rule 40(5), being a discretionary and beneficial provision for reduction of interest in genuine cases, did not render section 217 arbitrary or unconstitutional, and the challenge based on that rule failed. en-us Tue, 18 Sep 1979 00:00:00 +0530 Thu, 25 Mar 2010 12:53:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36913 Section 217 of the Income-tax Act, 1961, was upheld as a valid fiscal levy because the differentiation between new assessees and assessees already served with notice under section 210 was held to be based on an intelligible differentia with a rational nexus to the statutory object. The Court applied Article 14 reasonable classification principles and held that the absence of interest for one class did not make the levy on the other class discriminatory. Rule 40(5), being a discretionary and beneficial provision for reduction of interest in genuine cases, did not render section 217 arbitrary or unconstitutional, and the challenge based on that rule failed. Case-Laws Income Tax Tue, 18 Sep 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36913