1998 (8) TMI 4

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....hich deals in land has challenged the constitutional validity of section 40 of the Finance Act, 1983, which provides for levy of wealth-tax on closely held companies. Counsel submits that the statutory provision is unconstitutional on the ground that it makes hostile discrimination against closely held companies and the petitioner does not belong to that class of persons or activities intended ....

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....the violation to demonstrate the same unless ex facie the statute discloses hostile discrimination and unequal treatment of equals. There is no material whatsoever placed by the petitioner to substantiate its contentions. The presumption of constitutionality is, therefore, sufficient to warrant the dismissal of the petition. Even otherwise, it is always open to Parliament to choose a class in r....

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....ely held companies to the exclusion of other kinds of companies also does not render the section unconstitutional. It is not a principle of taxation that in order to tax one particular class all the other classes should also be taxed. The choice of the subject is a choice, which it is open to the Legislature to make, and the tax levied on one class of companies cannot be held to be unconstitutiona....