Gujarat High Court issues Notice to Govt, appeal challenging IT Provision, treating Defaulter, sincere Taxpayer similarly
An Income Tax Provision that treats defaulter and genuine taxpayers alike has been issued a notice to the government by the Gujarat High Court.
In its appeal, AS Construction has argued that the constitutional validity of the provisions of Section 36 (1) (va) of the Income Tax Act, 1961 and Explanation 2 and Explanation 5 to Section 43 Barvind of the Act being ultra vires Article 14 of the Indian Constitution of India.
According to Section 36 (1) (va), both defaulters and genuine taxpayers are treated equally. Through the insertion of an Explanation into Section 36 (1) (va) as well as Section 43B, the amendment further strengthens the provision.
Dr. Avinash Poddar, an advocate, appeared and debated on behalf of the small and medium-size organisation, claiming that this provision causes hardship to many small and medium-sized businesses because even one day delay does not allow for the deduction of expenses.
The notice is sent by a division bench of Justice J.B. Pardiwala and Justice Nisha M. Thakore, which can be collected from the Attorney General of India on 8th March, 2022.