2020 (3) TMI 638

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....livered by The Hon'ble Chief Justice) A challenge to the validity of Section 40(a)(iib) of the Income Tax Act, 1961, has been raised by the petitioner Corporation, contending that the amount which is deductible in computing the income chargeable in terms of the Income Tax Act is not being allowed under the garb of the aforesaid provision and for which learned Advocate General appearing for the petitioner / TASMAC has invited the attention of the Court to the order passed by the Assessing Authority dated 30.12.2019. 2. Learned Advocate General contends that the Income Tax Authority has erroneously construed the Value Added Tax (VAT) to be falling within the definition of a "charge" as contained in the impugned Section, and has ther....

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....ey are entitled to such exemption and therefore, it has become imperative for the petitioner Corporation to challenge the validity of the aforesaid Section. He, also contends that there is no rational basis for incorporating the said Section in the Income Tax Act nor there is any intelligible differentia, on the basis whereof, the State Government undertakings are being denied such deductions. Consequently, he submits that it ultimately amounts to interference with the fundamental rights of carrying on trade and business, as guaranteed under Article 19(1)(g) of the Constitution of India. The contention therefore, is that the constitutional validity, which is being questioned is based on a sound footing and therefore, this Court should enter....