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State Of Andhra Pradesh & Ors vs Nallamilli Rami Reddi & Ors on 29 August, 2001

Companies in whose case the income tax payable on the total income as computed under the normal provisions of the Act in respect of the previous year relevant to the assessment year is less than 10% of their book profits. The provision does not intend to make any classification between a capital asset infrastructure company and a capital intensive company with no capital assets. If, as a consequence of implementing the provisions of the section, some companies are put to some hardship, it does not mean that the legislature has created a distinct class of companies. As held by the Apex Court in State of A.P. v. Nallamilli Ramli Reddi (supra), a classification would be justified unless it is patently arbitrary. If there is equality and uniformity in each group, the law will not become discriminatory; though due to some fortuitous circumstance arising out of peculiar situation some included in a class get an advantage over others so long as they are not singled out for special treatment.
Supreme Court of India Cites 17 - Cited by 64 - Full Document
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