SOUTHERN ROADWAYS PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a petition by the assessee under Art. 32 of the Constitution challenging the constitutionality of the second proviso to s. 10(2)(vi-b) of Income tax Act introduced by The Taxation Laws (Amendment) Act (28 of 1960). The relevant section with the proviso is as follows :-

(2.) The petitioner is a limited company with its registered office at Madurai in the State of Madras which owns a fleet of buses and lorries and carries on the business of transport. In respect of assessment year 1960-61 it claimed a development rebate on all its plants and machinery including business. The Income tax Officer disallowed the claim of rebate on transport vehicles under the proviso above quoted and computed the tax payable without such rebate. It was contended on behalf of the petitioner that the proviso offends Art. 14 in that it discriminates between machinery which is office appliance or road transport vehicles and other kind of machinery. It is difficult to accept such a contention because there is nothing in the Constitution which prevents the legislature from choosing the object of taxation from amongst various classes of machinery for the purpose of giving development rebate. The Constitution does not prohibit any such classification which has been made in the present case.

(3.) The petition is wholly without merit and is therefore dismissed and the rule is discharged. The petitioner will pay the costs of the respondent.