K Nagamani and S.Chandramouli V. Union of India, Rep. by its Secretary, Income Tax Department, Central and The Director, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India and The Principal Chief Commissioner, Income Tax Department and The Income Tax Officer, Ward No. 2(1), Rajahmundry, East Godavari District and ICICI Bank, Corporate Office at ICICI Bank Towers, Bandra-Kurla Complex

WP/5110/2019

AI Insights

The case involves a writ petition filed under Article 226 of the Constitution of India by petitioners who had retired under the Early Retirement Option Scheme, seeking exemption from income tax under Section 10(IOC) of the Income Tax Act, 1961, for the assessment year 2004-05. The petitioners contended that despite their eligibility for exemption, the respondents did not grant the same and collected tax amounting to Rs. 1,50,000. The High Court, referencing a previous similar case (W.P. No.4177 of 2019), found in favor of the petitioners, directing the respondents to grant the exemption and refund the tax collected.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 803204 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 02-08-2023
• Assessment Year: misc
• Other Referred Cases: S.Palaniappan v. ITO (Civil Appeal No.4411 of 2010), W.P. No.42385 of 2016
• Laws Referred To: Income Tax Act, 1961, Article 226 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: HARINATH; M KIRANMAYEE; M INDRANI
• Assessee Lawyers: P PRASAD
• Keywords: Early Retirement Option Scheme; Refund of Tax; Writ of Mandamus; Exemption under section 10(IOC)
• Section: 10(IOC)

Judgement Text

"PRESENT WRIT PETITION NO: 5110 OF 2019 ...PETITIONERS Mumbai - 400 051 Rep. by its Authorized Officer ...RESPONDENTS THE HONOURABLE SRI JUSTICE U.DURGA PRASAD RAO AND THE HONOURABLE SMT JUSTICE VENKATA JYOTHIRMAI PRATAPA WEDNESDAY, THE SECOND DAY OF AUGUST TWO THOUSAND AND TWENTY THREE w I AND 1. Union of India, Rep. by its Secretary, Income Tax Department, Central IN THE HIQH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) Petition under Article 226 of the Constitution of India is filed praying that in thQ circumstances stated in the affidavit filed therewith, the High Court may be pleased to issu^ Writ, Order or Direction mor^ particularly one in the nature of Writ of mandamus declaring the action of.the respondents in not granting exemption under section 10 (IOC) of the Income Tax Act, -1961 to the petitioners for the assessment year 2004-05 though the. petitioners had retired under the Early Retirement Option Scheme and consequently direct the respondents to grant refund of the amount of Rs. 1,50,000/- thpt wgs collected towards tax for the assessment year 2004-05. Between: 1. K Nagamani, W/o. K.Chandra Rao, Aged about 58 years, R/o. D.No. 57-9-20, Mallikharjuna Nagar, Rajahmundry, East Godavari District (PAN No. AEHPK6882P) 2. S.Chandramouli, S/o. S.Satyanarayana, Aged about ^3 years, R/o. H.No. 12- 2-418/3/7, F.No. 302, Triveni Apartments, Viswa§ Nagar, Gudimalkapur, Mehdipatnam, Hyderabad (PAN No. AEVPS1276F) Secretariat, New Delhi 2. The Director, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, North Block, New Delhi 3. The Principal Chief Commissioner, Income Tax Department, Ayakar Bhawan. Hill Fort Road, Hyderabad - 04 4. The Income Tax Officer, Ward No. 2(1), Rajahmundry, East Godavari District 5. ICICI Bank, Corporate Office at ICICI Bank Towers, Bandra-Kurla Complex, lA NO: 1 OF 2019 lA NO: 2 OF 2019 Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to direct the respondents to pass appropriate orders on the legal notice dated 24- 09-2018 got issued by the petitioners pending disposal of the above writ petition. Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to permit the petitioners to file revised returns for financial year 2003-04 (Assessment Year 2004-2005) to enable the petitioners to claim exemption as per Section 10 (IOC) of IT Act pending disposal of the above writ petition Counsel for the Petitioner: SRI. P DURGA PRASAD Counsel for the Respondent No. 1: SRI. HARINATH N (Asst Solicitor General) Counsel for the Respondent Nos. 2 to 4: SRI. M. KIRANMAYEE (SC For INCOME TAX) Counsel for the Respondent No. 5: SRI. M INDRANI The Court made the following: ORDER r 2. 3. I J 9 HON’BL® SRI JUSTICE U.DURGA PRASAD RAO AND UON’BLE SMT. JUSTICE VENKATA JYOTHIRMAI PRATAPA WRIT PETITION No.5U0 of 2019 ORDER: (per u d pr , J) This Writ petition is filed, under Article 226 of the Constitution of India, for the following relief: “fo declare the action of the respondents in npt granting exemption under section 10 (IOC) of the Income Tax Act, 1961 to the petitioners for the assessment year 2004-05 though the petitioners had retired under the Early Retirement Option Scheme and consequently direct the respondents to grant refund of the amount of ^1,50,000/- that was collected towards tax for the assessment year 2004-05 and pass such Other orders ” Heard Sri P.Durga Prasad, learned counsel for petitioners, learned Deputy Solicitor General representing on behalf of the respondent and learned Government Pleader for Commercial Tax representing on behalf of the respondents 2 to 4. When the matter came up for hearing, both the learned counsel would admit that the subject matter in the present writ petition is squarely covered by the order dated 17.09.2019 in WP. No.4177 of 2019, passed 4. 5. //TRUE COPY// 3. 2 by a Division Bench of this Court and therefore, the same order can be passed in this matter in terms thereof. SO/- A. VIJAY A BABU ASSISTANT REGISTRAR ^^se6'^?c^J^f ic er Having regard to the fact that the present writ petition is covered by the order in W.P. No.4177 of 2019, this writ petition is allowed in temls thereof. No costs. k 4. ■ 6. One CC to SRI. P DURGA PRASAD Advocate [OPUC] I. TwS CD CopSs N (Asst Solicitor General) Advocate [OPUC] csb As a sequel, interlocutory applications pending, if any, in this case shall stand closed. To, '' New Union of India, Central Secretariat. MHrFort\"Rofd“yde?XdDepartment. Ayakar Shawan. The Income Tax Officer. Ward No. 2(1), Rajahmundry. East Godavari District A perusal of the order dated 17.09.2019 in W.P. No.4177 of 2019, would show that Hon’ble Division Bench of this Court in similar matter relying upon judgment of the Hon’ble Apex Court in S.Palaniappan v. ITO (Civil Appeal N0.4411 of 2010) and also decision of the Madras High Court in W.P. No.42385 of 2016, allowed the writ petition holding that the petitioners therein shall be entitled to exemption under Section lO(lOC) of the Income Tax Act, 1961 and consequently, they were entitled to refund the appropriate amounts. I HIGH COURT DATED:02/08/2023 ORDER WP.No.5110 of 2019 ALLOWING THE WP WITHOUT COSTS ---- '■I- 5 "