Prashanti Medical Services And ... vs Union Of India

The Supreme Court addressed the constitutional validity of sub-section (7) of Section 35AC of the Income Tax Act, 1961, which discontinued the benefit of claiming deductions for donations made to approved charitable projects from the assessment year 2018-2019. The Court held that the retrospective application of this sub-section was unconstitutional as it undermined the approvals granted by the National Committee for Promotion of Social and Economic Welfare. Consequently, the Court ruled in favor of the appellant, allowing the deductions for the donations made during the approved financial years.