M/s. AAMODA Publications Private Limited, V. Union Of India

WP/19014/2005

AI Insights

M/s. AAMODA Publications Private Limited filed a writ petition under Article 226 of the Constitution of India against the Union of India and other income tax authorities, challenging the provisions of section 115W.C. and section 115WB(2)(D) of the Income Tax Act, 1961. The petitioner argued that these provisions were arbitrary and discriminatory, violating Articles 14 and 19(1)(g) of the Constitution, as they imposed a higher Fringe Benefit Tax (FBT) rate compared to other industries. However, during the proceedings, it was brought to the court's attention that the government had abolished the FBT on certain fringe benefits, which included the benefits contested by the petitioner, through a recent amendment to the Act. Consequently, the court found that the petitioner's grievances were no longer applicable and disposed of the petition accordingly.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 725716 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 10-08-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: GADI PRAVEEN KUMAR; J V PRASAD
• Assessee Lawyers: B CHANDRASEN REDDY
• Keywords: Arbitrary; Discriminatory; Fringe benefit tax; Income Tax; Mandamus; Violate
• Section: 115W.C.; 115WB(2)(D); 115WM

Judgement Text

"I [ 33861 HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TENTH DAY OF AUGUST TWO THOUSAND AND TWENW THREE PRESENT THE HON'BLE SRI JUSTICE P. SAM KOSH AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION NO: 19014 OF 2005 Between: M/s. AAMODA Publications Private Limited, a Private limited Company, lncorporated Under the Provisions Of the Companies Act,1956, having its Registered Office at 8-2-2S3l82lJl6B8, Joumalists Colony, Jubilee Hills, Hyderabad, Rep. by its Authorized Signatory Sri Ch. Ramakn\"nnL.\"rr,r,o*r* AND 1. Union Of lndia, rep.by its Secretary, Ministry Of Finance, New Delhi. 2. The Chief Commissioner Of lncome Tax, Andhra Pradesh-1, Aaykar Bhvan, Hyderabad. 3. The Deputy Commissioner of lncome Tax,, Circle l(1), Aayakar Bhavan, HYderabad' ...RE'P.NDENT' Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, or order or direction more particularly one in the nature of writ or Mandamus- (a) Declaring the provision contained in the section 115 W.C. of the income Tax Act, considering 2OYo as the value of the Fringe benefit to the petitioner for the purpose of Computatbn of FBT under the head of Conveyance, tours and travels and use of hotel, boarding and holding facilitess, services of hospitality, repair, running and maintaining of motors and air crafts, as being arbitrary, discriminatory and violative of Articles 14, 19(1) (G) of the Constitution of lndia and treat the petitioner in parity with the industries which are given concessionary benefit of 5olo (b) Declaring the provision contained in section 115 WB (2) (D) of the income Tax Act, in depriving the benefits in respect of sales promotion including publicity and business promotion to the petitioner, ds provided the concessionary benefit in respect of expenditure, of hospitality to the hotel industry, for maintenance Of motor cars to transporters, expenditure for maintenance of aircraft to Articles 14,1s (1Xg) of the constitution of lndia and treat the petitioner on parity with other businesses by extending the concessionary benefit to the petitioner. t.A. NO: 1 0F 2005(W PMP. NO: 24202OF 20051 Petition under Section 151 cpc praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to direct the respondents to accept payment of Fringe Benefit Tax considering the alue of fringe benefit @ 5% instead ot 20%, pending disposal of the writ petition. Counsel for the Petitioner: SRI B. CHANDRASEN REDDY Counsel forRespondent No. 1: SRI cADl PRAVEEN KUMAR, DEPUTY SOLICITOR GENERAL Counsel for Respondent Nos. 2 & 3: SRI J. V. PRASAD (sc FoR tNcoME TAX) The Court made the following: ORDER THE IIOTY'BLE SRI WSTICE P.SAtr KOSHY AND THE HON'BLE SRI WSTICE L.AXMI NARAYANA AIISHEITY ORDER: (per Hon'ble Sri Justie P.S/I KOSHI) Heard Sri B. Chandrasen Reddy, learned counsel appearing for the petitioner in this writ petition, Sri Gadi Praveen Kumar, learned Dy. Solicitor General of India representing respondent No.l and Sri. J.V.Prasad, learned senior standing counsel for the Income Tax Department representing respondent Nos.2 and 3. 2. Today, when the matter is taken up for hearing, learned counsel for the petitioner fairly brought to the notice of this court, the Circular No.2 of 2O1O dated 29.Ol.2OlO, whereby, the Government has inserted a new section 115WM in the Income- tax Act, 196 I abolishing the Fringe Benefit Tax on the value of certain fringe benefrts containing in Chapter XII-H (Sections 1 15W to I 1sWL) of the Income-tax Act, 196 I . 3. In view of the said circular issued by the Government abolishing the fringe benefit tax by amending the Income-Tax Act, 1961, the grievance of the petitioner does not survive any further and the writ petition therefore is liable to be disposed of accordingly. i t WRIT PETITION No.19Ol4 of 2OOS 2 4 The writ petition accordingly stands disposed of. No order as to costs. Consequer:tly, miscellaneous petitions pending, if any, shall stand close d //TRUE COPY// SD/.V.KAVITHA ASSISTANIf'EGISTRAR Le SECTION OFFICER To, MBC GJP 1. One CC to Sri B Chandrasen Reddy Advocate [OPUC] 2. One CC to Sri Gadi Praveen Kumar, Deputy Solicitor General of lndia [OPUC] 3. One CC to Sri J. V. Prasad, SC for lncome Tax (OPUC) 4. Two CD Copies s HIGH COURT DATED: 1010812023 --?' -- , :.. : t :/ :./ {./ ,/ , . .4' t v ') -! @.il,1u ORDER WP.No.19014 ot 2005 DISPOSING OF THE WRIT PETITION WTHOUT COSTS 8----- -{t\"z I "