https://www.taxtmi.com/caselaws?id=49276 An annuity deposit scheme in Chapter XXII-A of the Income-tax Act was treated as falling within the field of income taxation because it operated as an alternative to immediate tax payment and used the income-tax machinery. Even if it also had a borrowing element, Parliament could validly enact it in the same statute. The scheme was not a colourable exercise of power, and harshness alone did not invalidate it. Its application only to higher income groups, with exemption thresholds and graduated rates, was held to rest on a real and substantial distinction with a rational nexus to the fiscal object, so the Article 14 challenge failed. en-us Wed, 06 Oct 1965 00:00:00 +0530 Tue, 19 Aug 2014 19:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49276 An annuity deposit scheme in Chapter XXII-A of the Income-tax Act was treated as falling within the field of income taxation because it operated as an alternative to immediate tax payment and used the income-tax machinery. Even if it also had a borrowing element, Parliament could validly enact it in the same statute. The scheme was not a colourable exercise of power, and harshness alone did not invalidate it. Its application only to higher income groups, with exemption thresholds and graduated rates, was held to rest on a real and substantial distinction with a rational nexus to the fiscal object, so the Article 14 challenge failed. Case-Laws Income Tax Wed, 06 Oct 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49276