L.N. Reddy, J. - (1.) THIS batch of appeals presents certain typical questions, which do not occur frequently.
(2.) THE facts in brief are as under: The respondents in these appeals are assessess under the Income Tax Act (for short 'the Act'). A search was conducted under Section 132 of the Act on all the respondents on 16.07.1997. Cash of about Rs. 20,00,000/ - and other materials have been discovered. In the statement recorded under sub -section (4) of Section 132 of the Act, it was revealed that there existed about Rs. 1 crore of undisclosed income. By the time the search has taken place, the Voluntary Disclosure of Income Scheme, 1997 (for short 'the Scheme') introduced through Finance Act, 1997 was in operation; with effect from 01.07.1997. Section 64 of the Finance Act, 1997 provided for voluntary disclosure of undisclosed income and dropping of all further proceedings on payment of the income tax thereon. Sub -section (2) thereof, however, kept the income, referable to an assessment year, as regards which, notices under Section 142 or 148 of the Act have been issued; and the income referable to any year preceding the one, in which search under Section 132 or requisition under Section 132A or survey under Section 133A of the Act have been carried out.
(3.) THE respondents filed W.P. No. 20316 of 1997 before this Court challenging certain provisions of the Scheme. Their plea was that the Scheme, insofar as it discriminates between the income referable to the previous years during which search was conducted or notices were issued under Section 142 or 148 of the Act is violative of Article 14 of the Constitution of India.;