The writ petition was filed for a declaration that the amendments made by the Taxation Laws ( Second Amendment ) Act , 2016 , to section 115BBE of the Income -tax Act , 1961 enhancing the rate of income -tax for specified incomes which are unexplained , to 60% and the surcharge provided in the Finance Act , 2016 to 25 % for income covered under section 69A , to be prospective . Single Judge rejected the writ petition. On appeal division bench affirmed the order of the single Judge . The Court held that the Legislature has the power to levy taxes and duties . ( AY. 2018 -19 )
Maruthi Babu Rao Jadav v. ACIT ( 2021) 430 ITR 504 / 199 DTR 66/ 319 CTR 422 ( Ker ) ( HC)
S.115BBE: Tax on specified income – Levy of tax at 60% and surcharge @ 25 % – Legislature has the power to levy taxes and duties – Taxation Laws ( Second Amendment Act , 2016 ) – Order of single Judge is affirmed [ S.69A, Art, 245,246 (1), 269, 270, 271 ]