The Gujarat High Court has issued the notice to the government on a plea challenging Income Tax Provision treating defaulter as well as a genuine taxpayer at par.
The appellant, A S Construction has challenged the constitutional validity of the provisions of Section 36(1)(va) of the Income Tax Act, 1961 along with Explanation 2 and the Explanation 5 to Section 43Barvind of the Act being ultra vires Article 14 of the Constitution of India.
Section 36(1)(va) treats defaulter as well as genuine taxpayer at par. The amendment in Section 36(1)(va) and Section 43B by way of insertion of an Explanation further make the provision more harsh.
Advocate Dr. Avinash Poddar appeared in the matter and stated that this provision is causing hardship to many genuine small and medium-sized business organisations because even 1-day delay, denies the deduction of the Total Expense.
The division bench of Justice J.B.Pardiwala and Justice Nisha M.Thakore issued the notice to the Attorney General of India returnable on 08.03.2022.
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