Assessee filed a writ petition challenging provisions of sections 115JB & 80-IC to be ultra vires inasmuch as benefits granted under S. 80-IC could not be withdrawn by introduction of provisions of S. 115JB of the Act on the ground that there was discrimination in terms of article 14 of Constitution between individual and company . High Court held that that there was a reasonable classification by way of special provision for companies, therefore, it would fall in reasonable classification inasmuch as S. 80IC dealt with deduction for an assessee whereas provision of S. 115JB would come into play only when assessee was a company.
Bishnu Krishna Shrestha. v. CIT (2019) 414 ITR 405 /263 Taxman 478/ 180 DTR 158/ 309 CTR 478 (Raj)(HC) S.B.L. (P.) Ltd. v. CIT (2019) 414 ITR 405 / 263 Taxman 478 (Raj.)(HC) Editorial : SLP is granted to the assessee, S.B.L. (P.) Ltd. v. CIT (2019) 263 Taxman 477/411 ITR 39 (St) (SC)
S. 80IC : Special category states–Book profit– Legislative powers-Constitutional validity –Discrimination between individual and company-There was a reasonable classification by way of special provision for companies–Provision is held to be valid.[S. 115JB, Art, 14, 226]