Dismissing the petition the Court held that the question of extending opportunity while assigning percentages under section 115WC may not arise, since it is a policy matter. The contention of non-inclusion of fringe benefits under clause (24) of section 2 and its inclusion under clause (43) does not vitiate the provisions of fringe benefits tax with reference to the charging section 4, since fringe benefits tax is incorporated as an independent provision. The power to incorporate Chapter XII-H of the Income-tax Act, 1961 is available under the Seventh Schedule to the Constitution under entry 97. Further violation of article 14 is not made out.

Hence neither Chapter XII-H or any part thereof is unconstitutional or opposed to articles 14 and 246(1) read with entry 82 of List I of the Seventh Schedule to the Constitution of India.