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1954 (10) TMI 5 - SUPREME COURTWhether Section 5(1) of Act XXX of 1947 infringes Article 14 of the Constitution inasmuch as it is not based on a rational classification ? Whether, after the coming into force of the Indian Income-tax (Amendment) Act, 1954, which operates on the same field as Section 5(1) of Act XXX of 1947, the provisions of Section 5(1) of Act XXX of 1947, assuming they were based on a rational classification, have not become void and unenforceable, as being discriminatory in character ? Held that:- Assuming the provisions of Section 5(1) of Act XXX of 1947 could be saved from the mischief of Article 14 of the Constitution on the basis of a valid classification, that defence is no longer available in support of it after the introduction of the new sub-section in Section 34 of the Income-tax Act, which sub-section is intended to deal with the same class of persons dealt with by Section 5(1) of the impugned Act. The result is that proceedings before the Investigation Commission can no longer be continued under the procedure prescribed by the impugned Act. We therefore direct that an appropriate writ be issued against the Commission prohibiting it from proceeding further with the cases of these petitioners under the provisions of Act XXX of 1947
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