R.JAYAKUMAR V. UNION OF INDIA

WP(C)/16609/2022

AI Insights

The case involves retired employees of the Kerala Co-operative Milk Marketing Federation Ltd, who sought a judicial directive to the government to revise the income limit for tax exemption on encashed earned leave, which had not been updated since 2002. The petitioners argued that the lack of revision despite multiple pay revisions was unjust, leading to higher tax liabilities on their retirement benefits. The government had last set the limit in 2002 at Rs. 3 lakhs, which was only recently updated to Rs. 25 lakhs in 2023, applicable from April 1, 2023. The court, acknowledging the petitioners' plight but recognizing the separation of powers, refrained from issuing the requested mandamus, suggesting instead that the petitioners approach the government directly for relief.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 724467 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 29-01-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: MANU; P R AJITHKUMAR
• Assessee Lawyers: C S PRAKASH; T K DEVARAJAN
• Keywords: Income Tax; Leave encashment; Mandamus; Policy Decision; Retrospective effect
• Section: 10(10AA)(ii)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 29TH DAY OF JANUARY 2024 / 9TH MAGHA, 1945 WP(C) NO. 16609 OF 2022 PETITIONERS: 1 R.JAYAKUMAR, AGED 58 YEARS, S/O RAMACHANDRAN PILLAI, ELECTRICIAN GRADE A, THE KERALA MINERAL AND METALS LIMITED, RESIDING AT CHELAKATTU HOUSE, KALARI PANMANA, CHAVARA P.O., KOLLAM – 691583 2 SRINIVASAN G, AGED 51 YEARS, S/O GANDI, OPERATOR GRADE A, THE KERALA MINERAL AND METALS LIMITED, RESIDING AT VALIYAPADAM, VILANTHARA P O, SASTHAMKOTTA, KOLLAM-690521 BY ADVS. C.S.AJITH PRAKASH T.K.DEVARAJAN PAUL C THOMAS FRANKLIN ARACKAL M.B.SOORI BABU M. NIDHIN RAJ VETTIKKADAN HAARIS MOOSA ANCY THANKACHAN RESPONDENTS: 1 UNION OF INDIA REPRESENTED BY THE SECRETARY TO GOVERNMENT OF INDIA, MINISTRY OF FINANCE, JEEVAN DEEP BUILDING, SANSAD MARG, NEW DELHI-110001 2 THE CHAIRMAN, CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, SECRETARIAT BUILDING, NEW DELHI-110001 3 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, INCOME TAX DEPARTMENT, GOVERNMENT OF INDIA, 356, C R BUILDING, I P ESTATE, NEW DELHI-110002 4 THE CHIEF COMMISSIONER OF INCOME TAX, WP(C) NO. 16609 OF 2022 & Con.cases -2- INCOME TAX DEPARTMENT, GOVERNMENT OF INDIA, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, ERNAKULAM-682018 5 THE KERALA MINERAL AND METALS LIMITED, CHAVARA (A GOVERNMENT OF KERALA ENTERPRISE) SASTHAMANGALAM, CHAVARA P.O., KOLLAM-691583 REPRESENTED BY THE CHAIRMAN&MANAGING DIRECTOR. BY ADV. MANU S., ASG OF INDIA P.R. AJITH KUMAR-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.01.2024, ALONG WITH WP(C).5445/2022, 5523/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16609 OF 2022 & Con.cases -3- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 29TH DAY OF JANUARY 2024 / 9TH MAGHA, 1945 WP(C) NO. 5445 OF 2022 PETITIONERS: 1 GEORGE U.K AGED 62 YEARS S/O KOCHOUSOPH, RESIDING AT URAKKADAN HOUSE, ANGAMALY, ERNAKULAM-683 572. 2 THRESIAMMA T.V, AGED 62 YEARS, D/O VAREED, RESIDING AT URAKKADAN HOUSE, ANGAMALY, ERNAKULAM-683 572. 3 SICILY M.V, AGED 62 YEARS D/O VARGHESE, RESIDING AT NALIATH HOUSE, KARAYAMPARAMBU KARUKUTTY, ERNAKULAM-683 576. 4 PAULY GEORGE, AGED 63 YEARS D/O GEORGE, RESIDING AT MALIAKKAL HOUSE, CHALAMPADAM, IRINGALAKUDA, TRICHURE-680 121. 5 LUCY K.R, AGED 62 YEARS D/O RAPPAI, RESIDING AT BRAMMAKULATH HOUSE, VALLAKUNN, KALLETTUMKARA, TRICHURE-680 683 6 PANKAJAVALLY N, AGED 63 YEARS D/O NARAYANAN, RESIDING AT PALLAVI PERL AVENNUE, KOLAZHY, TRICHURE-680 010 WP(C) NO. 16609 OF 2022 & Con.cases -4- 7 PRAVINKUMAR, AGED 62 YEARS S/O GOVINDAN, RESIDING AT AISWARIA, HARINAGAR, POONKUNNAM, TRICHURE-680 002. 8 ANITHA E.K, AGED 63 YEARS D/O KRISHNAN, RESIDING AT SRUTHILAYAM, CHOTTUPARA, KILLANNUR, TRICHURE-680 581 9 SURESH BABU, AGED 63 YEARS S/O KANNAN, RESIDING AT PRANAVAM, EDAPPALLY, ERNAKULAM-682 024. 10 BEENA KUMARI, AGED 62 YEARS D/O PANKAJAKSHA MENON, RESIDING AT REVATHY, SANKARADIL HOUSE, EDAVANAKAD P.O., ERNAKULAM-682 502. 11 RAJANI NARENDRAN, AGED 62 YEARS D/O SURENDRAN, RESIDING AT CHEERANGAT HOUSE, NEW LANE, NORTH PARAVUR P.O., ERNAKULAAM-683 513. BY ADVS. C.S.AJITH PRAKASH T.K.DEVARAJAN PAUL C THOMAS BABU M. NIDHIN RAJ VETTIKKADAN HAARIS MOOSA ANCY THANKACHAN RESPONDENTS: 1 UNION OF INDIA REPRESENTED BY THE SECRETARY TO GOVERNMENT OF INDIA, MINISTRY OF FINANCE, JEEVAN DEEP WP(C) NO. 16609 OF 2022 & Con.cases -5- BUILDING, SANSAD MARG, NEW DELAHI-110 001 2 THE CHAIRMAN, CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, SECRETARIAT BUILDING, NEW DELHI-110 001 3 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, INCOME TAX DEPARTMENT, GOVERNMENT OF INDIA, 356, C R BUILDING, I P ESTATE, NEW DELHI-110 002 4 CHIEF COMMISSIONER OF INCOME TAX, INCOME TAX DEPARTMENT, GOVERNMENT OF INDIA, CENTRAL REVENUE BUILDING, I.S PRESS ROAD, ERNAKULAM-682 018. 5 THE STATE BANK OF INDIA LIMITED, STATE BANK BHAVAN, MADAME CAMA MARG, MUMBAI-400 021. REPRESENTED BY ITS MANAGING DIRECTOR BY ADVS. MANU S., ASG OF INDIA JOSEPH RONY JOSE, CGC P.R. AJITH KUMAR-SC A.KUMAR G.MINI(1748) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.01.2024, ALONG WITH WP(C).16609/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16609 OF 2022 & Con.cases -6- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 29TH DAY OF JANUARY 2024 / 9TH MAGHA, 1945 WP(C) NO. 5523 OF 2022 PETITIONERS: 1 BABU N.O., AGED 62 YEARS, S/O.OUSEPH, RESIDING AT NALIATH HOUSE, KARAYAMPARAMBU, KARUKUTTY, ERNAKULAM-683576. 2 JOHNSON EMMANUEL, AGED 63 YEARS, S/O.CHINNAIAH, RESIDING AT CHINYAS NILAYAM, VADAMADURAI, COIMBATORE, TAMILNADU-641017. 3 VIJAYAN P.M., AGED 63 YEARS, S/O.MADHAVAN, RESIDING AT PALLAVI PERL AVENUE, KOLAZHY, THRICHURE-680010 4 SEBASTIAN K.T., AGED 63 YEARS S/O.THOMAS, RESIDING AT KAIPRAMBATTU HOUSE, MOOKKANNOOR, ERNAKULAM-683577 5 SOMASUNDARAN P.B., AGED 63 YEARS, S/O.BALAKRISHNAN NAIR, RESIDING AT CHANDRAM HOUSE, MOOKKANNOOR, ERNAKULAM-683577 6 BOBY VARGHESE, AGED 62 YEARS, S/O.VARGHESE, RESIDING AT THURUTHIYIL HOUSE, ALLAPRA, VENGOLA, ERNAKULAM-683556. WP(C) NO. 16609 OF 2022 & Con.cases -7- 7 NATARAJAN C.R., AGED 63 YEARS S/O.RANGANATHAN, RESIDING AT D NO.2/9, TVS NAGAR, KAVUNDAPALAYAM, COIMBATORE, TAMILNADU -641030. 8 VIJAYAN P.K., AGED 63 YEARS, S/O.BALAKRISHNA MENON, RESIDING AT1 G H, KRISHNA, GURUVAYOOR, THRICHURE-680101. 9 GOVINDARAJAN, AGED 63 YEARS, S/O.VISWANATH, RESIDING AT SARADA KRIPA, TATABAD, COIMBATORE, TAMILNADU-641017. 10 VARGHESE M.M., AGED 62 YEARS, S/O.M.J. MATHEW, RESIDING AT MOOLAN HOUSE, OLANADU, VARAPPUZHA P.O., ERNAKULAM-683517. 11 SHIBUKUMAR N., AGED 62 YEARS S/O.RAMAKRISHNAN, RESIDING AT NIVANATHUPARAMBIL HOUSE, KOMBANADU P.O., ERNAKULAM-683546 12 THOMAS MATHEW, AGED 62 YEARS, S/O.MATHEW, RESIDING AT THEKKEKARA HOUSE, THOTTAKKATTUKARA, ALUVA-683108. BY ADVS. C.S.AJITH PRAKASH T.K.DEVARAJAN PAUL C THOMAS BABU M. NIDHIN RAJ VETTIKKADAN HAARIS MOOSA ANCY THANKACHAN WP(C) NO. 16609 OF 2022 & Con.cases -8- RESPONDENTS: 1 UNION OF INDIA REPRESENTED BY THE SECRETARY TO GOVERNMENT OF INDIA, MINISTRY OF FINANCE, JEEVAN DEEP BUILDING, SANSAD MARG, NEW DELHI – 110001. 2 THE CHAIRMAN CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, SECRETARIAT BUILDING, NEW DELHI-110001. 3 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX INCOME TAX DEPARTMENT, GOVERNMENT OF INDIA, 356, C.R.BUILDING, I P ESTATE, NEW DELHI- 110002. 4 CHIEF COMMISSIONER OF INCOME TAX INCOME TAX DEPARTMENT, GOVERNMENT OF INDIA, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, ERNAKULAM-682 018. 5 THE FEDERAL BANK LIMITED, FEDERAL TOWERS, P.O.BOX NO.103, ALUVA, ERNAKULAM-683101, REPRESENTED BY ITS MANAGING DIRECTOR. BY ADVS. MANU S., ASG OF INDIA P.R. AJITH KUMAR-SC NAVANEETH.N.NATH JACOB P.ALEX JOSEPH P.ALEX MANU SANKAR P. AMAL AMIR ALI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.01.2024, ALONG WITH WP(C).16609/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16609 OF 2022 & Con.cases -9- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 29TH DAY OF JANUARY 2024 / 9TH MAGHA, 1945 WP(C) NO. 28983 OF 2021 PETITIONERS: 1 RAMESAN P.A., AGED 58 YEARS, S/O. ARAVINDAKSHAN NAIR, SENIOR MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM – 695004. 2 MURALEEDHARA DAS M., AGED 60 YEARS, S/O. MADHAVAN C.K, MANAGING DIRECTOR (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT MANASA, NORTH GATE, ETTUMANOOR P.O, KOTTAYAM – 686631. 3 VIJAYAKUMAR K.S., AGED 64 YEARS, S/O. KRISHNAN NAIR, MANAGING DIRECTOR (RETIRED) THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT AMBADI, CNRA A 56/1, CHITRA NAGAR, POOJAPURA P.O, THIRUVANANTHAPURAM – 695012. 4 CHANDRASEKHARAN A., AGED 63 YEARS, S/O. ANDY K, ASSISTANT MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT SA HOMES, T2/B5, JEWEL 3 PREMIUM APARTMENTS, KALLEPULLY P.O, PALAKKAD – 678005. WP(C) NO. 16609 OF 2022 & Con.cases -10- 5 SALIM V.S., AGED 62 YEARS, S/O.M.K. KASIM, ASSISTANT MANAGER(RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT VALAYIL HOUSE, PUNNAPRA P.O, ALEPPY – 688004. 6 JAYAPRAKASH K.N., AGED 59 YEARS, S/O. NARAYANAN NAIR, MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT SUDARSANAM, VNRA 15 A, MUKKOLA, KALLAYAM P.O, THIRUVANANTHAPURAM – 695043. 7 GEORGE THOMAS, AGED 59 YEARS, S/O. OMMEN JOSEPH, MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. , RESIDING AT SHALOM PNRA G5, SUBHASG NAGAR LANE, MEDICAL COLLEGE P.O, THIRUVANANTHAPURAM – 695011. 8 SATHYANARAYANAN K., AGED 59 YEARS, S/O. KESAVA PANICKER, MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT SREELASYAM, ATHANI ROAD, VANCHIYOOR, THIRUVANANTHAPURAM – 695035. 9 JAYACHANDRAN V., AGED 60 YEARS, S/O. VELANDY R, MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT WP(C) NO. 16609 OF 2022 & Con.cases -11- VADAKKECHALA, MUTHALAMADA, GOVINDARAPUM P.O, PALAKKAD – 678507. 10 MARY SAMUEL, AGED 60 YEARS, D/O. SAMUEL K.G, MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT KANIYAMPARAMBIL HOUSE, AREKUZHI ROAD, ANGAMALY P.O, PALAKKAD – 683572. 11 GEEVARGHIS T.V., AGED 58 YEARS, S/O. VARGHESE T.V, SENIOR MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT THEKKEKARA, PLOT NO. 61, NEHRU NAGAR, KURIACHIRA, TRICHURE – 680006. 12 KESAVAN N.V. AGED 61 YEARS S/O. NEELAKANTAN NAMBIAR, SENIOR MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT FLAT NO. D1, ATHULYA GARDENS, MANKAVE, KOZHIKODE – 673007. 13 CHANDRALAL C.S., AGED 59 YEARS, S/O. SIVADAS, TECHNICIAN (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT CHAKKUPARAMBU, PAZHAVEED, ALAPPUZHA – 688009. 14 MANOHARAN K.K., S/O. KUNJUNNI, TECHNICIAN (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING WP(C) NO. 16609 OF 2022 & Con.cases -12- FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT VIJAYABHAVAN, PUNNAPRA P.O, ALAPPUZHA – 688005. 15 UNNIKRISHNAN V., AGED 59 YEARS, S/O. VELAYUDHAN PILLAI, TECHNICIAN(RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004., RESIDING AT KANJIRAMKADU, KARUMADY, AMBALAPPUZHA P.O, PIN – 688564. 16 PRASAD KUMAR S.U., AGED 61 YEARS, S/O. UNNIKRISHNAN NAIR, TECHNICIAN (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT PRASADAM, KIZHCHERIMEL, CHENGANOOR P.O, PIN – 658859. 17 SURESHKUMAR R., AGED 58 YEARS, S/O. RAMACHANDRAN NAIR, MANAGING DIRECTOR IN CHARGE (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT VALLIATH BHAVAN, KARAKKAD P.O, CHENGANOOR, ALAPPUZHA – 689504. 18 SURESH S., AGED 60 YEARS, S/O. SUKUMARAN NAIR, ASSISTANT MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT KUCHIVILANGAM, KARUKUTTY P.O, ERNAKULAM – 683576. 19 KOSHY CHERIAN, AGED 63 YEARS, WP(C) NO. 16609 OF 2022 & Con.cases -13- S/O. CHERIYAN, ACCOUNTS OFFICER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT KANNEL PUTHENVEEDU, PATHIYOOR P.O, ALAPPUZHA – 690508. 20 SHERAFF K.S., AGED 59 YEARS, S/O. SULAIMAN, TECHNICIAN (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT ALSABAH, GOVERNMENT MUSLIM GLPS, PUNNAPRA P.O, ALAPPUZHA – 688004. 21 KURIAN T.K., AGED 61 YEARS, S/O. ABRAHAM KURUVILA, ASSISTANT MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT THEVARADITIL, THACHAKUNNU, PUTHUPALLY P.O, KOTTAYAM – 686011. 22 RAJU K.A., AGED 63 YEARS, S/O. AYYAPPAN ACHARI, MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT SREERAGAM, SANATHANAPURAM P.O, ALAPPUZHA – 688003. 23 RATHEESAN M.K., AGED 61 YEARS, ASSISTANT MANAGER (RETIRED), THE KERALA CO- OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT VIGNESWAR, KURUVA, KATALAYI P.O, KANNUR – 670003. 24 HARIDAS P.P., WP(C) NO. 16609 OF 2022 & Con.cases -14- AGED 61 YEARS, S/O. PONNAPPAN AHCARY, MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT PATTAPARAMBIL, CHIYARAM P.O, TRICHUR – 680026. 25 SUKUMARAN K.K., AGED 59 YEARS, S/O.PAPPAN KUNJANA, ASSISTANT MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT ARYA BHAVAN, KIZHAKKENCHERY P.O, PALAKKAD – 678684. 26 THOMAS P.T., AGED 58 YEARS, S/O. PAPPAN KUNJANA, SR. MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT PULLAT HOUSE, PUNNATHARA WEST P.O, ETTUMANOOR – 686631. 27 GEORGE THOMAS P.T., AGED 60 YEARS, S/O. PAPPAN KUNJANA, MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT BETHLEHAM, UTRA -60, UNICHIRATHAIKAVU, CHANGAMPUZHA NAGAR, ERNAKULAM – 682033. 28 SAJEENDRAN T.V., AGED 58 YEARS, S/O. BALAKRISHNAN NAIR, SR. MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT SREELAKAM, DHARMADAM P.O, THALASSERY, KANNUR – 670106. 29 GEORGEKUTTY K.K., AGED 59 YEARS, S/O. KURIAKOSE K.P, ASSISTANT MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT WP(C) NO. 16609 OF 2022 & Con.cases -15- KAVALAKKAL, ELLIKAD P.O, MALAPPURAM – 679331. 30 AJITHKUMAR K.R., AGED 61 YEARS, S/O. RAMAKRISHNAPILLAI, ASSISTANT MANAGER (RETIRED), THE KERALA CO- OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT KURUPPAYINTAYATH, EDAYARANMULA P.O, KOZHENCHERY, PATHANAMTHITTA – 689532. 31 JANARDHANAN E.V., AGED 63 YEARS, S/O. RAMAKRISHNAPILLAI, MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT EDATHARA, SOUPRNIKA, REGENCY GARDENS, KUTTANELLORE P.O, TRICHUR – 680014. 32 PUSHPAN G, AGED 59 YEARS, S/O. GOPALAN, TECHNICIAN (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT CHILKLAMADAM, VANDANAM P.O, ALAPPUZHA – 688005. 33 SURESH R., AGED 59 YEARS, S/O. RAGHAVAN NAIR, MANAGER (RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT SOUPARNIKA, PATHIRIPPADAM P.O, MALAPPURAM – 679334. 34 LALY M.J., AGED 61 YEARS, D/O. VARKEY YACOB, ASSISTANT OFFICER (RETIRED), THE KERALA CO- OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT KAIMALIL, KARIKODU, PERUVA P.O, PIN – 686610. WP(C) NO. 16609 OF 2022 & Con.cases -16- 35 RAMANI K.P., AGED 61 YEARS, D/O. PARAMESWARAN NAIR, JR. SUPDT(RETIRED), THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004., RESIDING AT PONNEMKANDATH, RAMACHANDRAN MASTER ROAD, VARANDARAPPALLY P.O, TRICHUR – 680303. 36 THOMAS K.T., AGED 62 YEARS, S/O. THOMAS K.M, MANAGING DIRECTOR IN CHARGE (RETIRED), THE KERALA CO- OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT NIRVRITHI, KALANTHTHAZHAM, CHELAVOOR P.O, KOZHIKODE – 673571. 37 SURESH CHANDRAN K.R., AGED 60 YEARS, S/O. RAGHAVAN PILLAI, MANAGING DIRECTOR IN CHARGE (RETIRED), THE KERALA CO- OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT NIRVRITHI, KALANTHTHAZHAM, CHELAVOOR P.O, KOZHIKODE – 673571. 38 MURALEEDHARAN NAIR, AGED 61 YEARS, ASSISTANT MANAGER (RETIRED), THE KERALA CO- OPERATIVE MILK MARKETING FEDERATION LTD, PATTOM, THIRUVANANTHAPURAM - 695004. RESIDING AT KRISHNAJALI, SRINGERI ROAD, KALADY P.O, ERNAKULAM – 683574. BY ADVS. C.S.AJITH PRAKASH T.K.DEVARAJAN FRANKLIN ARACKAL PAUL C THOMAS M.B.SOORI BABU M. ANCY THANKACHAN NIDHIN RAJ VETTIKKADAN WP(C) NO. 16609 OF 2022 & Con.cases -17- RESPONDENTS: 1 UNION OF INDIA, REPRESENTED BY THE SECRETARY TO GOVERNMENT OF INDIA, MINISTRY OF FINANCE, NEW DELHI – 110001. 2 THE CHAIRMAN, CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, SECRETARIAT BUILDING, NEW DELHI – 110001. 3 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, INCOME TAX DEPARTMENT, GOVERNMENT OF INDIA, 356, C.R. BUILDING, I.S. PRESS ESTATE, NEW DELHI – 110002. 4 CHIEF COMMISSIONER OF INCOME TAX, INCOME TAX DEPARTMENT, GOVERNMENT OF INDIA, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, ERNAKULAM – 682018. 5 THE KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD. PATTOM, THIRUVANANTHAPURAM - 695004, REPRESENTED BY ITS MANAGING DIRECTOR. BY ADVS. P.R. AJITH KUMAR-SC MANU S., ASG OF INDIA LATHA ANAND THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.01.2024, ALONG WITH WP(C).16609/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16609 OF 2022 & Con.cases -18- JUDGMENT [WP(C) Nos.16609/2022, 5445/2022, 5523/2022, 28983/2021] Heard the learned counsel appearing for the petitioners and also the respective learned counsel appearing for the respondents. 2. The petitioners are retired employees of the 5th respondent. All the petitioners retired before 01.04.2023. These writ petitions have been filed mainly seeking for a writ, order or direction in the nature of mandamus commanding the respondent Authorities to review the income limit for taxing purposes on earned leave salary under Section 10AA(ii) of the Income Tax Act 1961 with retrospective effect, inasmuch as after 2002 there has been no revision of the income limit for the purposes of exemption on encashment of earned leave salary under Section 10(10AA)(ii) of the Income Tax Act. WP(C) NO. 16609 OF 2022 & Con.cases -19- 3. Section (10AA)(ii) of the Income Tax Act on reproduction reads as under: “(10AA) (i) …… (ii) any payment of the nature referred to in sub-clause (i) received by an employee, other than an employee of the Central Government or a State Government, in respect of so much of the period of earned leave at his credit at the time of his retirement whether on superannuation or otherwise as does not exceed ten months, calculated on the basis of the average salary drawn by the employee during the period of ten months immediately preceding his retirement whether on superannuation or otherwise, subject to such limit as the Central Government may, by notification in the Official Gazette, specify in this behalf having regard to the limit applicable in this behalf to the employees of that Government: Provided that where any such payments are received by an employee from more than one employer in the same previous year, the aggregate amount exempt from income-tax under this subclause shall not exceed the limit so specified: Provided further that where any such payment or payments was or were received in any one or more earlier WP(C) NO. 16609 OF 2022 & Con.cases -20- previous years also and the whole or any part of the amount of such payment or payments was or were not included in the total income of the assessee of such previous year or years, the amount exempt from income-tax under this subclause shall not exceed the limit so specified, as reduced by the amount or, as the case may be, the aggregate amount not included in the total income of any such previous year or years. Explanation.—For the purposes of sub-clause (ii),— the entitlement to earned leave of an employee shall not exceed thirty days for every year of actual service rendered by him as an employee of the employer from whose service he has retired;” 4. It is the prerogative of the Government to fix the limit of income of encashment of earned leave salary for the purposes of exemption from payment of income tax. Unless the Government issues the notification fixing the limit of income for earned leave salary, an employee cannot claim exemption from payment of income tax on encashment of earned leave up to 300 days. The last notification was issued on 31.05.2002, and the WP(C) NO. 16609 OF 2022 & Con.cases -21- Government did not thereafter issue a notification despite there having been three pay revisions. The latest notification is only in 2023, wherein the upper limit has been fixed as Rs.25 lakhs, taking the highest salary of the cabinet secretary, i.e., Rs.2.5 lakhs per month. 5. The Government should have revised the upper limit, which was fixed under the notification of 2002 as Rs.3 lakhs taking into consideration the three pay revisions. However, the Government has not done so. The petitioners all stood retired before the latest notification, which has been issued fixing the upper limit as Rs.25 lakhs for exemption from payment of earned leave income. The employer has also deducted the admissible tax above Rs.3 lakhs from the petitioners. At this distant point of time, this Court, considering the limitation on the power of the Court as well as the doctrine of separation of powers, cannot issue a mandamus to the respondent Authorities to revise the WP(C) NO. 16609 OF 2022 & Con.cases -22- upper limit of the encashment of earned leave for granting exemption from payment of the income tax with retrospective effect. Issuance of notification, as provided in the provision, is in the realm of the powers of the Executive. 6. Learned Standing Counsel for the Revenue, submits that, in fact, in one of the cases, the Delhi High Court has directed the Government to consider revision of the upper limit. However, the Government has issued the notification only in the year 2023, which is applicable with effect from 01.04.2023. 7. In view thereof, the Court, though, has sympathy with the petitioners, but considering the limitation on powers of the Court, this Court is unable to issue a writ of mandamus commanding the respondents to revise the upper limit in respect of the employees who retired before 01.04.2023. This is in the realm of policy decision, which is to be taken by the Executive. WP(C) NO. 16609 OF 2022 & Con.cases -23- 8. Thus, these writ petitions are disposed of with liberty to the petitioners to approach the Government for the reliefs sought for in these writ petitions, and the Government may take a decision on their representations. Pending interlocutory application, if any, in these present writ petitions stands dismissed. Sd/- DINESH KUMAR SINGH JUDGE vv WP(C) NO. 16609 OF 2022 & Con.cases -24- APPENDIX OF WP(C) 5445/2022 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE RELEVANT PORTION (SECTION 10(AA)(10 & 10(AA)(11) OF THE INCOME TAX ACT, 1961 Exhibit P2 A TRUE COPY OF THE NOTIFICATION NO 123 ISSUED BY THE INCOME TAX DEPARTMENT DATED 31.5.2002 Exhibit P3 A TRUE COPY OF THE PROPOSAL ORIGINATED BY THE UNDER SECRETARY (ITA.1) OF CBDT IN 2002 FOR ENHANCING THE LIMIT TO 3 LAKHS UNDER SECTION 10 A (II) OF THE INCOME TAX ACT, 1961 Exhibit P4 A TRUE COPY OF THE NOTIFICATION NO S.O 553 (E) DATED 8.6.1998 ISSUED BY THE INCOME TAX DEPARTMENT Exhibit P5 A TRUE COPY OF THE NOTIFICATION NO S.O 249 (E) DATED 26.3.1996 ISSUED BY THE INCOME TAX DEPARTMENT Exhibit P6 A TRUE COPY OF THE NOTIFICATION NO S.O 1015 (E) DATED 27.11.1998 ISSUED BY THE INCOME TAX DEPARTMENT Exhibit P7 A TRUE COPY OF THE PAY SLIP OF THE 1ST PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT Exhibit P8 A TRUE COPY OF THE PAY SLIP OF THE 2ND PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT Exhibit P9 A TRUE COPY OF THE PAY SLIP OF THE 3RD PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT WP(C) NO. 16609 OF 2022 & Con.cases -25- APPENDIX OF WP(C) 5523/2022 PETITIONER EXHIBITS hgf Exhibit P1 A TRUE COPY OF THE RELEVANT PORTION (SECTION 10(AA)(1) AND 10(AA) (II) OF THE INCOME TAX ACT, 1961 Exhibit P2 A TRUE COPY OF THE NOTIFICATION NO 123 ISSUED BY THE INCOME TAX DEPARTMENT DATED 31-05-2002 Exhibit P3 A TRUE COPY OF THE PROPOSAL ORIGINATED BY THE UNDER SECRETARY (ITA 1) OF CBDT IN 2002 FOR ENHANCING THE LIMITED TO 3 LAKHS UNDER SECTION 10 A (II) OF THE INCOME TAX ACT 1961 Exhibit P4 A TRUE COPY OF THE NOTIFICATION NO S.O 553(E) DATED 08-06-1988 ISSUED BY THE INCOME TAX DEPARTMENT Exhibit P5 A TRUE COPY OF THE NOTIFICATION NO. S.O 249 (E) DATED 26-03-1996 ISSUED BY THE INCOME TAX DEPARTMENT Exhibit P6 A TRUE COPY OF THE NOTIFICATION NO S.O 1015 (E) DATED 27-11-1998 ISSUED BY THE INCOME TAX DEPARTMENT Exhibit P7 A TRUE COPY OF THE PAY SLIP OF THE 1ST PETITIONER ISSUED BY THE 5TH RESPONDENT AT TIME OF RETIREMENT Exhibit P8 A TRUE COPY OF THE PAY SLIP OF THE 2ND PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT Exhibit P9 A TRUE COPY OF THE PAY SLIP OF THE 3RD PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT WP(C) NO. 16609 OF 2022 & Con.cases -26- Exhibit P10 A TRUE COPY OF THE PAY SLIP OF THE 4TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT Exhibit P11 A TRUE COPY OF THE PAY SLIP OF THE 5TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT WP(C) NO. 16609 OF 2022 & Con.cases -27- APPENDIX OF WP(C) 28983/2021 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE RELEVANT PORTION (CLAUSE 10(AA)(I) & 10 (AA)(II) OF THE INCOME TAX ACT, 1961. Exhibit P2 A TRUE COPY OF THE NOTIFICATION NO. 123 DATED 31.05.2002 ISSUED BY THE 2ND RESPONDENT. Exhibit P3 A TRUE COPY OF THE NOTIFICATION NO. S.O.553 E DATED 08.06.1998 ISSUED BY THE 2ND RESPONDENT. Exhibit P4 A TRUE COPY OF THE NOTIFICATION NO. S.O. 249 E DATED 26.03.1996 ISSUED BY THE 2ND RESPONDENT. Exhibit P5 A TRUE COPY OF THE NOTIFICATION NO. S.O.1015(E) DATED 27.11.1998 ISSUED BY THE 2ND RESPONDENT. Exhibit P6 A TRUE COPY OF THE PAY SLIP OF THE 1ST PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P7 A TRUE COPY OF THE PAY SLIP OF THE 2ND PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P8 A TRUE COPY OF THE PAY SLIP OF THE 3RD PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P9 A TRUE COPY OF THE PAY SLIP OF THE 4TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. WP(C) NO. 16609 OF 2022 & Con.cases -28- Exhibit P10 A TRUE COPY OF THE PAY SLIP OF THE 5TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P11 A TRUE COPY OF THE PAY SLIP OF THE 6TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P12 A TRUE COPY OF THE PAY SLIP OF THE 7TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P13 A TRUE COPY OF THE PAY SLIP OF THE 8TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P14 A TRUE COPY OF THE PAY SLIP OF THE 9TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P15 A TRUE COPY OF THE PAY SLIP OF THE 10TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P16 A TRUE COPY OF THE PAY SLIP OF THE 11TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P17 A TRUE COPY OF THE PAY SLIP OF THE 12TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P18 A TRUE COPY OF THE PAY SLIP OF THE 13TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P19 A TRUE COPY OF THE PAY SLIP OF THE 14TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. WP(C) NO. 16609 OF 2022 & Con.cases -29- Exhibit P20 A TRUE COPY OF THE PAY SLIP OF THE 15TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P21 A TRUE COPY OF THE PAY SLIP OF THE 16TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P22 A TRUE COPY OF THE PAY SLIP OF THE 17TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P23 A TRUE COPY OF THE PAY SLIP OF THE 18TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P24 A TRUE COPY OF THE PAY SLIP OF THE 19TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P25 A TRUE COPY OF THE PAY SLIP OF THE 20TH PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P26 A TRUE COPY OF THE PAY SLIP OF THE 21ST PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P27 A TRUE COPY OF THE PAY SLIP OF THE 22ND PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. Exhibit P28 A TRUE COPY OF THE PAY SLIP OF THE 23RD PETITIONER ISSUED BY THE 5TH RESPONDENT AT THE TIME OF RETIREMENT. WP(C) NO. 16609 OF 2022 & Con.cases -30- APPENDIX OF WP(C) 16609/2022 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE RELEVANT PORTION (SECTION 10(10AA)(1) & 10(10AA)(II)) OF THE INCOME TAX ACT, 1961 Exhibit P2 A TRUE COPY OF THE NOTIFICATION NO.123 ISSUED BY THE INCOME TAX DEPARTMENT DATED 31.05.2002 Exhibit P3 A TRUE COPY OF THE PROPOSAL ORIGINATED BY THE UNDER SECRETARY (ITA.I) OF CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, IN 2002 FOR ENHANCING THE LIMIT TO 3 LAKHS UNDER SECTION 10 (10AA) (II) OF THE INCOME TAX ACT, 1961 Exhibit P4 A TRUE COPY OF THE NOTIFICATION NO.S.O.553 (E) DATED 08.06.1988 ISSUED BY THE INCOME TAX DEPARTMENT Exhibit P5 A TRUE COPY OF THE NOTIFICATION NO.S.O.249 (E) DATED 26.03.1996 ISSUED BY THE INCOME TAX DEPARTMENT Exhibit P6 A TRUE COPY OF THE NOTIFICATION NO.S.O.1015 (E) DATED 27.11.1998 ISSUED BY THE INCOME TAX DEPARTMENT Exhibit P7 A TRUE COPY OF THE REPRESENTATION DATED 11.05.2022 GIVEN BY THE 1ST PETITIONER TO THE 5TH RESPONDENT Exhibit P8 A TRUE COPY OF THE NOTIFICATION NO. S.O. 2276(E) DATED 24.05.2023 ISSUED BY THE 1ST RESPONDENT. WP(C) NO. 16609 OF 2022 & Con.cases -31- Exhibit P9 A TRUE COPY OF THE NOTIFICATION NO. G.S.R. 721(E) DATED 25.07.2016 ISSUED BY THE 1ST RESPONDENT. "