M/s AGA Publications Limited, V. Union of Inida,

WP/19774/2005

AI Insights

M/s AGA Publications Limited filed a writ petition under Article 226 of the Constitution of India against the Union of India and other respondents, challenging the provisions of the Income Tax Act, 1961, specifically Sections 115WC and 115WB(2)(D), which pertained to the computation of Fringe Benefit Tax (FBT). The petitioner argued that these provisions were arbitrary and discriminatory, seeking parity with other industries that received concessionary benefits. However, during the proceedings, it was brought to the court's attention that the government had abolished the FBT through a subsequent amendment to the Act. Consequently, the court found the petitioner's grievances to be moot and disposed of the petition accordingly.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 732431 (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: Revenue
• Court: HIGH COURT
• Department Lawyers: GADI PRAVEEN KUMAR; J V PRASAD
• Assessee Lawyers: B CHANDRASEN REDDY
• Keywords: Arbitrary; Discrimination; Fringe benefit tax; Income Tax; Writ of Mandamus
• Section: 226; 115WC; 115WB(2)(D)

Judgement Text

"[ 3386 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TENTH DAY OF AUGUST TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRIJUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION NO: 19774 OF 2005 Between: M/s AGA Publications Limited, A Public Limited Company, incorporated under the provisions of the Companies Act 1956, having its Office at 396 VAARTHA House Lower Tank Bund, Hyderabad represented by its Authorised signatory Sri P.Balakrishna Manager (Legal). ...PETITIONER AND 1. Union of lndia, rep by its Secretary, Ministry of Finance, New Delhi. 2. The Chief Commissioner of lncome Tax, AP-1 , (1) Aaykar Bhavan. Hyderabad. 3. The Deputy Commissioner of lncome Tax, Circle 1 (1 ) Aaykar Bhavan, Hyderabad. ...RESPONDENTS 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 a writ order or direction more particularly one in the nature of writ of Mandamus a) Declaring the provision contained in the Section 115 WC of the lncome Tax Act, considering 2Oo/o as the value of the fringe benefits to the petitioner for the purpose of computation of FBT under the head of conveyance, tours and travels and use of hotel, boarding and lodging facilities, services of hospitality, repair running and maintaining of motors and aircrafts, 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 benefits of 5% b) Declaring the provision contained in Section 1 15 --7 WB (2) (D) of the inconre Tax Act in depriving the benefits in respect of sales promotion including publi:ity and business promotion to the petitioner, as provided the concessionary benefit inrespect of expenditure of hospitality to the hotel industry for maintenance of motor cars to transporters, expenditure for maintenance of aircraft tc Aircraft carriers, as being arbitrary, discriminatory and violative of Articles 14,19 (1) (g) of the Constitution of lnida and treat the petitioner on parity with other business by extending the concessionary benefit to the petitioner. l.A. NO: 1 OF 2005(WPMP. NO: 25140 OF 2005) Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in suppcrrt of the petition, the High Court may be pleased to direct the respondents to accef)t payment of Fringe Benefit Tax considering the value of fringe benefit @ 5% instead of 20% pending disposal of the writ petition. Counsel for the Petitioner: SRl. B. CHANDRASEN REDDY Counsel for the Respondent No.1 : SRI. GADI PRAVEEN KUMAR, DEPUW SOLICITOR GENERAL OF INDIA Counsel for the Respondent No. 2 and 3: J V PRASAD (SC FOR INCOME TAX) The Court made the following: ORDER THE HON'BLE SRI JUSTICE P.S/II}I KOSIIT AND THE HOIT'BLE SRI WSTICE LAXMI NARAYANAALISHETTY WRIT PETITION No.19774 of2OO5 ORDER: (per Hon'ble Si Justice P.SAM KOS,HY) 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. 1 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 2010 dated 29.Ol.2OIO, whereby, the Government has inserted a new section l lsWM in the Income- tax Act, 196 1 abolishing the Fringe Beneht Tax on the value of certain fringe benefits containing in Chapter XII-H (Sections 1 1 5W to 1 1 sWL) of the Income-tax Act, 196 1 . 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 surrrive any further and the writ petition therefore is liable to be disposed of accordingly. 2 4 The writ petition accordingly stands disposed of' No order as to costs. Consequentlt', miscellane ous petitions pending, if any, shall stand closed SD/- MOHD. SANAULLAH ANSARI ASSISTANT REGISTRAR ,TRUE COPY// LII) SECTION OFFICER To, TJ si 1. One CC to Sri. B. Chandrasen Reddy, Advocate [OPUC] 2. One CC to Sri. Gadi Praveen Kumar, Deputy Solicitor General Of lndia loPUcl 3. One CC to Sri. J / PRASAD (SC for INCOME TAX) [OPUC] 4. Two CD Copies k HIGH COURT DATED:1 010812023 ORDER WP.No.19774 of 2005 DISPOSING OF THE WRIT PETITION WITHOUT COSTS. -/a /';, /,,: l' :'i i l '- , -;, :9 a+ 1 t.: -t D.' ..ii=_ [B stP 1@ v () J sr',11; -- -2.- 'J ,- C D( E- STAIE "