GEEP FLASHLIGHT INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS batch of writ petitions calls in question the constitutional validity of Sub -section (8) of Section 40A of the Income -tax Act, 1961. The sub -section was inserted by the Finance Act, 1975, with effect from April 1, 1976, and omitted by the Finance Act, 1985, with effect from April 1, 1986.

(2.) SECTION 40A sets out expenses or payments not deductible in certain circumstances. For the sake of convenience, we may set out Sub -section (8). It reads :

(3.) THE objects and reasons behind this sub -section were set out in a memorandum accompanying the Finance Bill, 1975. It has been extracted in paragraph 8(b) of C.M.W.P. No. 175 of 1979. It reads thus (see [1975] 98 ITR 184) :