Case: Southern Roadways Private Limited Vs. Union of India and Another

The petitioner is a limited company with its registered office at Madurai in the State of Madras which owns a fleet of buses and lorries and carries on the business of transport In respect of assessment year 1960-61 it claimed a development rebate on all its plants and machinery including business. The Income tax Officer disallowed the claim of rebate on transport vehicles under the proviso above quoted and computed the tax payable without such rebate.

Reasoning:
It is difficult to accept such a contention because there is nothing in the Constitution which prevents the legislature from choosing the object of taxation from amongst various classes of machinery for the purpose of giving development rebate. The Constitution does not prohibit any such classification which has been made in the pressnt case.