(1.) A presumptive and pre-emptive tax has been imposed on persons who "fly-by-night". This has been done by inserting Sections 44AC and 206C in the Income-tax Act, 1961, (hereinafter called "the Act"), by the Finance Act, 1988. The drawing of the tax net tighter on these types of persons as an "anti-evasion measure", as described by the Finance Minister in his Budget Speech, has been assailed in this batch of writ petitions on three counts: (1) lack of legislative competence; (2) violation of Article 14 of the Constitution; and (3) violation of Article 19(1)(g) of the Constitution.
(2.) LET the two sections under attack be noticed at the outset. Section 44AC reads as below: