H A K RAO Vs. UNION OF INDIA

JUDGEMENT

(1.) IN THIS PETITION, PETITIONER WHO IS A CHARTERED ACCOUNTANT HAS CHALLENGED THE CONSTITUTIONAL VIRES OF SECTION 44-AA OF THE INCOME TAX ACT, 1961, INTER ALIA ON THE GROUND THAT BETWEEN THE PROFESSIONS NOT ENUMERATED IN SUB-SECTION (1) OF SECTION 44-AA AND OTHER PROFESSIONS A DISCRIMINATION IS MADE INASMUCH AS THE PROFESSIONS ENUMERATED ARC REQUIRED TO MAINTAIN BOOKS OF ACCOUNTS TO BE INSPECTED BY THE INCOME-TAX OFFICER TO ASCERTAIN THEIR INCOME WHILE OTHER PROFESSIONS NOT SO ENUMERATED IN SUB-SECTION (1) BUT FALLING UNDER SUB-SECTION (2) IF THE INCOME EXCEEDS THE AMOUNT MENTIONED IN THE SAID SUBSECTION ARE REQUIRED TO MAINTAIN THE ACCOUNTS. PRIMA FACIE WE DO NOT FIND ANY SUCH DISCRIMINATION BECAUSE THE ENUMERATED PROFESSIONS UNDER SUB-SECTION (1) TO SECTION 44-AA FALL DEFINITELY INTO A CATEGORY OF PROFESSIONS BY AND LARGE REGULATED BY STATUTES WHICH IN TURN CAST MORE OBLIGATIONS ON THOSE PERSONS TO MAINTAIN ACCOUNTS SUCH AS LAWYERS, CHARTERED ACCOUNTANTS, DOCTORS, ETC. THEREFORE, THE PETITIONER CANNOT PRESS INTO SERVICE ARTICLE 14, WHEN UNDER ARTICLE 14 CLASSIFICATION OF PERSONS TO ACHIEVE THE PURPOSE OF A LEGISLATION IS PERMISSIBLE.

(2.) THE OBJECT OF THE INCOME TAX ACT IS TO SEE THAT TAX IS LEVIED ON PERSONS WHO HAVE INCOME FROM THE SOURCE OF PROFESSION AND ORGANISED PROFESSIONS OR PROFESSIONS WHICH ARE IN THE CATEGORIES LIKE INTERIOR DECORATORS WHO CHARGE CONSIDERABLE FEE FOR THE SERVICES RENDERED, PERHAPS ARE NOT REGULATED BY ANY ENACTMENT TO SUBSERVE THE OBJECT OF BRINGING TO TAX THEIR INCOME.

(3.) WHAT FALLS OUT SIDE THE ENUMERATED CLASS,THE PRACTICALITY IS THE GUIDING FORCE TO PRESCRIBE A MONETARY LIMIT WHICH WILL COMPEL THEM TO MAINTAIN THE ACCOUNTS. IT WOULD BE FUTILE TO CALL UPON AN ORDINARY PAN SELLER OR A STREET VENDOR OR A ROAD SIDE HAWKER OR CABIN SHOP OWNER OR VEGETABLE VENDOR AND PERSONS LIKE THAT WHO ALSO CARRY ON PROFESSION TO MAINTAIN BOOKS OF ACCOUNTS. VIEWED IN THAT FASHION WE ARE UNABLE TO SEE ANY DISCRIMINATION OR NEED TO ATTRACT THE EQUALITY ASSURED UNDER ARTICLE 14 OF THE CONSTITUTION. IT CANNOT BE SAID THAT PROFESSIONS WHICH WE HAVE MENTIONED SUCH AS STREET HAWKERS, ORDINARY PAN SELLER, ETC., CANNOT BE SAID TO BELONG TO THE SAME CATEGORY OR CLASS OF PERSONS AS ADVOCATES, DOCTORS AND ENGINEERS.