Bankers’ Higher Salaries Justify Proportionate Tax Burden, No Arbitrariness: Bombay HC Upholds S. 17(2) Income Tax Amendment

The Bombay High Court upheld an income tax amendment related to bankers' higher salaries, stating that the proportionate tax burden imposed on them was not arbitrary. The ruling came after a challenge was raised regarding an increase in tax liabilities for bankers earning higher salaries. The court observed that the government had the discretion to amend tax laws in a manner that reflects the income distribution and ensures fairness. Bankers, being high earners, were seen as appropriate subjects for the increased tax rates, and the court emphasized that the tax burden should be proportionate to income. The judgment affirmed that the amendment was valid and in line with constitutional provisions, upholding the decision to impose the increased tax on higher salaried individuals.