https://www.taxtmi.com/caselaws?id=753472 Delhi HC dismissed petitioner's constitutional challenge to Section 71(3A) of Income Tax Act, 1961 inserted by Finance Act 2017, which caps set-off of house property losses against other income at Rs. 2 lakh. Court held the amendment is prospective from April 1, 2018, not retrospective, and constitutionally valid. The provision doesn't violate Article 14 as it applies uniformly to all taxpayers without discriminatory classification, represents reasonable policy to prevent abuse of earlier provisions, and doesn't create manifest arbitrariness. Article 19(1)(g) challenge also failed as the restriction is proportionate and doesn't absolutely prohibit deduction rights. Court emphasized Legislature's wide latitude in fiscal measures and rejected petitioner's promissory estoppel argument. en-us Thu, 30 May 2024 00:00:00 +0530 Sat, 01 Jun 2024 16:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753472 Delhi HC dismissed petitioner's constitutional challenge to Section 71(3A) of Income Tax Act, 1961 inserted by Finance Act 2017, which caps set-off of house property losses against other income at Rs. 2 lakh. Court held the amendment is prospective from April 1, 2018, not retrospective, and constitutionally valid. The provision doesn't violate Article 14 as it applies uniformly to all taxpayers without discriminatory classification, represents reasonable policy to prevent abuse of earlier provisions, and doesn't create manifest arbitrariness. Article 19(1)(g) challenge also failed as the restriction is proportionate and doesn't absolutely prohibit deduction rights. Court emphasized Legislature's wide latitude in fiscal measures and rejected petitioner's promissory estoppel argument. Case-Laws Income Tax Thu, 30 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753472