D.VENKATARAMAN V. THE COMMISSIONER OF INCOME

WP(MD)/3230/2011

AI Insights

The case involves multiple petitioners who challenged the orders of the Income Tax Appellate Tribunal, which confirmed the tax levied on them under the Early Retirement Option Scheme. The petitioners argued that they were entitled to an exemption under Section 10(10C) of the Income Tax Act, citing a decision by the Hon'ble Apex Court that supported their claim. The respondents, representing the income tax department, contended that the matter was under appeal. However, the court, referencing a prior decision in a similar batch of Writ Appeals, ruled in favor of the petitioners, granting them the exemption and ordering a refund of the taxes collected.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 733103 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 04-12-2012
• Assessment Year: misc
• Other Referred Cases: Civil Appeals No.6997 to 7002 of 2009, Writ Appeal (MD) Nos.1098 to 1155 of 2011
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: R
• Assessee Lawyers: R KUMAR
• Keywords: Early Retirement Option Scheme; Exemption; Income Tax; Writ of Certiorarified Mandamus
• Section: 10(10C)

Judgement Text

"1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 04.12.2012 CORAM: THE HONOURABLE MR.JUSTICE K.N.BASHA and THE HONOURABLE MR.JUSTICE P.DEVADASS W.P.(MD)Nos.3230, 3282 and 3292 of 2011 and M.P.(MD) Nos.1 and 2 of 2012 D.Venkataraman .. Petitioner in W.P.(MD)No.3230 of 2011 T.Saroja .. Petitioner in W.P.(MD)No.3282 of 2011 S.Kumaragurubaran .. Petitioner in W.P.(MD)No.3292 of 2011 vs. 1.The Commissioner of Income Tax (Appeals), The Office of Income Tax, No.4, Williams Road, Contonment, Trichirappalli District. 2.The Deputy Commissioner of Income Tax, Circle - 1, The Office of Income Tax, Thanjavur District. 3.The Income Tax Officer, Ward - 1 (3), The Office of Income Tax, Thanjavur District. .. Respondents in all the Writ Petitions COMMON PRAYER:This Writ Petition has been filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus, to call for the records of the impugned orders dated 04.09.2008, 02.09.2008 and 02.09.2008 made in Nos.I.T.A.No.1429/Mds/2007 Assessment year 2004-05, I.T.A.No.1352/Mds/07 (Batch) and I.T.A.No.1348/Mds/ 07 respectively of the Income Tax Appellate Tribunal Bench 'C', Chennai confirming the order of the first respondent dated 07.03.2007, 20.02.2007 and 07.03.2007 made in I.T.A.No.460/CIT(A)/TRY/2006-2007/17, I.T.A.No.451/CIT(A)/TRY/2006-2007/400 and I.T.A.No.457/CIT(A)/TRY/2006- 2007/388 respectively and to quash the same and consequently to direct the respondents to refund/return the amount of Rs.2,08,155/- (Rupees Two Lakhs Eight Thousand One Hundred and Fifty Five only), Rs.1,92,971/- (Rupees One Lakh Ninety Two Thousand Nine Hundred and Seventy one only), Rs.1,92,964/- (Rupees One Lakh Ninety Two Thousand Nine Hundred and Sixty Four only) respectively, collected as income tax on the petitioners' amount of Early Retirement option Scheme by the respondents, in the light of APEX COURT DECISION made in batch of Civil Appeals No.6997 to 7002 of 2009 dated 21.10.2009. For petitioners : Mr.R.Suresh Kumar For Respondents : Mr.R.Krishnamoorthy COMMON ORDER (Order of the Court was made by K.N.BASHA, and P.DEVADASS, JJ) The petitioners have come forward with these Writ Petitions https://hcservices.ecourts.gov.in/hcservices/ 2 seeking for the relief of quashing the impugned orders and to refund/return the amounts collected as income tax on the petitioners' amount, in the light of the decision of the Hon'ble Apex Court in batch of Civil Appeals No.6997 to 7002 of 2009 dated 21.10.2009. 2. All these Writ Petitions arise out of a common issue viz., whether the petitioners are entitled to get the exemption under Section 10(10C) of the Income Tax Act and as such all these Writ Petitions have been taken up together for passing a common order. 3. These writ petitions were originally heard by the learned Single Judge and the learned Single Judge has passed the following order on 22.03.2011: \"These matters arise out of the order of the Income Tax Appellate Tribunal. Therefore, these Writ Petitions may be placed before the Hon'ble Administrative Judge to post this matter before the Division Bench.\" 4. Mr.R.Sureshkumar, the learned counsel for the petitioner would contend that the petitioners are entitled to the exemption as per Section 10(10C) of Income Tax Act in view of the decision of the Division Bench of this Court in Writ Appeal (MD) Nos.1098 to 1155 of 2011 dated 12.11.2011, following the decision of the Hon'ble Apex Court and it is contended that the impugned order is liable to be set aside. 5. Mr.R.Krishnamoorthy, the learned Standing Counsel for the respondents would contend that the department had already taken steps to file a Special Leave Petition against the above said judgment of this Court. 6. We have carefully considered the rival submissions made on both sides and perused the materials available on record, including the earlier judgment of this Court dated 12.11.2011, in a batch of Writ Appeals. 7. The facts remain that the claims of the petitioners in all these three matters are to the effect that they are entitled to exemption under Section 10(10C) of the Income Tax Act and the said contention is also substantiated by the unreported judgment of the Division Bench of this Court dated 12.11.2011, made in Writ Appeal (MD) Nos.1098 to 1155 of 2011 in the Assistant Commissioner of Income Tax v. K.R.Alagappan and others. 8. A perusal of the above said Division Bench judgment shows that the Division Bench has held as hereunder: \"5.At the outset, it is to be stated that the writ Court, only by following the decision of the Hon'ble Apex Court in Civil Appeal Nos.6997 to 7002 of 2009, passed the common order directing the appellants to grant exemption under Section 10(10C) of the Income Tax Act. It is not disputed that the said decision of the Hon'ble Apex Court would not cover the point involved in these matters. 6.The main contention raised by the learned counsel for the appellant is to the effect that the respondents/assessees have not exhausted the alternative remedy of filing statutory appeals and they have straightaway approached this Court by invoking jurisdiction of https://hcservices.ecourts.gov.in/hcservices/ 3 this Court under Article 226 of the Constitution of India and the writ court also passed orders in their favour. We are unable to countenance such a contention for the simple reason that the appellant has participated in the writ proceedings and put-forward other contentions and not raised the question of alternative remedy. It is needless to state that even if there is alternative remedy available, there is no bar for entertaining writ petitions on the ground of violation of certain specific statutory provisions. As far as the case on hand is concerned, the writ court has only followed the decision of the Hon'ble Supreme Court in Civil appeal Nos.6997 of 7002 of 2009. 7.Apart from such a factor, it is also fairly submitted before this court by the learned Standing Counsel for the Appellant Department that the order of the writ court, giving direction to the appellant to grant exemption under Section 10(10c) of the Income Tax Act, has already been given effect to in respect of some of the assessees/respondents. Therefore, there cannot be any discrimination among the assessees, who are parties to the batch of writ petitions in which the writ court passed the common order on 03.11.2010.\" The above said position of the Division Bench of this Court makes it abundantly clear that the writ Court has passed a common order in the Writ Petitions following the decision of the Hon'ble Apex Court in Civil Appeal Nos.6997 to 7002 of 2009, granting exemption to the similarly placed persons under Section 10(10C) of the Income Tax Act. 9. Accordingly, in terms of the above Division Bench judgment, these Writ Petitions are allowed. Consequently, the impugned orders passed by the Income Tax Appellate Tribunal are set aside. It is made clear that in all these Writ Petitions, the petitioners are entitled to exemption under section 10(10C) of the Income Tax Act. It is also made clear that in the event of the petitioners in all these writ petitions have paid income tax as demanded by the department, the said amount shall be refunded to the petitioners within a period of eight weeks from the date of receipt of a copy of this order. No costs. Consequently, connected M.Ps. are closed. Sj Sd/- Assistant Registrar[CO] /True copy/ To Sub Assistant Registrar 1.The Commissioner of Income Tax (Appeals), The Office of Income Tax, No.4, Williams Road, Contonment,Trichirappalli District. 2.The Deputy Commissioner of Income Tax,Circle – 1, The Office of Income Tax, Thanjavur District. 3.The Income Tax Officer, Ward - 1 (3), The Office of Income Tax, Thanjavur District. W.P.(MD)Nos.3230, 3282 and 3292 of 2011 and M.P.(MD) Nos.1 and 2 of 2012 3P/4C DATED:04.12.2012 RPB 10.01.2013 https://hcservices.ecourts.gov.in/hcservices/ "