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Shashikant Laxman Kale And Anr vs Union Of India And Anr on 20 July, 1990

11. No doubt a differentiation is made between the employees of the Central and State governments on the one hand and the other employees on the other in section 10(10) and section 10(10AA) of the Income-tax Act. When full exemption is provided in the sections to retirement gratuity and encashment of earned leave by the Government employees, the exemption in the case of other employees had been restricted to a limit calculated in accordance with the provisions in the section on the basis of the salary of those employees. But, that would not by itself make the sections discriminatory or violative of article 14 of the Constitution of India. It has become unnecessary for us to dilate on the subject at length in view of the judgment of the Supreme Court in Shashikant Laxman Kale v. Union of India . Arguments similar to those of the petitioner herein were advanced in that case as against the provisions of section 10(10C) of the Income-tax Act. Negativing the same, the court held that the scope of the classification in taxation statutes is wider and the Legislature has more freedom in such matters. The court said (at page 111) :
Supreme Court of India Cites 23 - Cited by 136 - J S Verma - Full Document
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