HY.AGRI.UNIVERSITY TEACHERASSO. V. UNION OF INDIA & ORS

CWP/10/1995

AI Insights

The case involves the Haryana Agricultural University Teachers Association petitioning the High Court of Punjab and Haryana against the Union of India and others, seeking a writ of mandamus. The association argued that their members, who are not provided with rent-free or concessional rent accommodation, should not have the difference between 10% of their basic salary and the actual rent paid considered as a perquisite for tax purposes under Section 17(2)(ii) of the Income Tax Act, 1961. The respondents contended that individual grievances regarding tax deductions should be addressed by each teacher through the Assessing Authority. The court referenced a similar case involving Kurukshetra University Teachers Association and decided to direct the petitioners to the Assessing Authority for individual assessments.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 684361 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 05-09-2013
• Assessment Year: misc
• Other Referred Cases: Kurukshetra University Teachers Association & others Vs. State of Haryana & others (2006) 206 CTR (P&H) 122
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: TEJINDER JOSHI
• Assessee Lawyers: AALOK MITTAL
• Keywords: Income Tax Act; Mandamus; Perquisite; Rent; Tax deduction at source; Basic salary
• Section: 144 A; 17(2)(ii)

Judgement Text

"C.W.P. No.10 of 1995 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH C.W.P. No.10 of 1995. Date of Decision:-05.09.2013. Haryana Agricultural University Teachers Association. .........Petitioner. Versus Union of India and others .........Respondents. CORAM: Hon'ble Mr. Justice Rajive Bhalla Hon'ble Mr. Justice Dr. Bharat Bhushan Parsoon. ***** Present:- Mr. Aalok Mittal, Advocate for the petitioner. Mr. Tejinder K. Joshi, Advocate for the respondents. Rajive Bhalla, J (Oral) The petitioner, namely, Haryana Agricultural University Teachers Association is before this Court praying for issuance of a writ, order or direction especially in the nature of mandamus directing the respondents not to compel the Heads of the Departments of Haryana Agricultural University to deduct tax at source from salaries of its members by treating difference of 10% of basic salary and actual rent being paid by an employee as a perquisite under Section 17 (2) (ii) of the Income Tax Act, 1961 (hereinafter mentioned as the Act). Yag Dutt 2013.09.13 10:58 I attest to the accuracy and integrity of this document C.W.P. No.10 of 1995 -2- Counsel for the petitioner submits that as members of the petitioner association have neither been provided any rent free accommodation nor accommodation at a concessional rent, they are not in receipt of any perquisite which is exigible to income tax under Section 17 (2) (ii) of the Act. It is further submitted that rent for official accommodation is fixed irrespective of the status of the person and, therefore, is necessarily excluded from the definition of perquisite. It is also contended that if no concession is given to the employee in the matter of rent, there is no question of any perquisite being available to such an employee. Counsel for the revenue submits that the petitioner association should be relegated to its alternative remedy of approaching the concerned authority for redressal of its grievance, as each, individual teacher would be required to approach the Assessing Authority, setting out his grievance with respect to each individual perquisite received or not received. Even otherwise, as the dispute is primarily based on facts, relating to perquisite received or not received, the petitioner should be relegated to the remedy of approaching the concerned Assessing Authority. We have heard counsel for the parties and perused the paper book. A similar controversy pertaining to teachers of the Kurukshetra University, Kurukshetra, was disposed of by relegating the association to file an application before the competent authority under Section 144-A of the Act. The petitioners are, therefore, relegated in terms of order in Kurukshetra University Teachers Association & others Vs. State of Yag Dutt 2013.09.13 10:58 I attest to the accuracy and integrity of this document C.W.P. No.10 of 1995 -3- Haryana & others (2006) 206 CTR (P&H) 122 to approach the Assessing Authority under Section 144-A of the Act, for redressal of their individual grievances, if any. The petition is disposed of accordingly. (Rajive Bhalla) Judge (Dr. Bharat Bhushan Parsoon) Judge September 05, 2013 'Yag Dutt' Yag Dutt 2013.09.13 10:58 I attest to the accuracy and integrity of this document "