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2011 (11) TMI 1 - SC - Income TaxKar Vivad Samadhana Scheme, 1998 (KVSS) - Discrimination - HC held that Section 87(m)(ii) (b) of Finance (No.2) Act, 1998 is violative of Article 14 of the constitution insofar as it seeks to deny the benefit of the 'Kar Vivad Samadhana Scheme, 1998 to those who were in arrears of duties etc., as on 31.03.1998 but to whom the notices were issued after 31.03.1998 and further, has struck down the expression "on or before the 31st day of March 1998" under Section 87(m)(ii)(b) of the Finance (No. 2) Act, 1998 as ultra vires of the Constitution of India Constitution of India - Held that: - Article 14 does not prohibit reasonable classification of persons, objects and transactions by the Legislature for the purpose of attaining specific ends. To satisfy the test of permissible classification, it must not be "arbitrary, artificial or evasive" but must be based on some real and substantial distinction bearing a just and reasonable relation to the object sought to be achieved by the Legislature. Discrimination resulting from fortuitous circumstances arising out of particular situations, in which some of the tax payers find themselves, is not hit by Article 14 if the legislation, as such, is of general application and does not single them out for harsh treatment. Advantages or disadvantages to individual assesses are accidental and inevitable and are inherent in every taxing Statute as it has to draw a line somewhere and some cases necessarily fall on the other side of the line. - Decision of HC set aside - decided in favor of revenue.
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