S. Ramani and S. Sambandam and M. Vaidyanathan and K. R. Muthukaruppan and P. L. Subramanian and T. Alagappan and N. Narayanan and M. Chandran and K. Visalakshi and L. Meyyappan V. The Income Tax Officer, Ward I(2), Kumbakonam and The Income Tax Officer, Ward II(2), Tiruchirappalli and The Income Tax Officer, Ward I(2), Pudukottai and The Income Tax Officer, Ward I(1), Karaikudi and The Income Tax Officer, Ward I(2), Karaikudi and The Income Tax Officer, Ward I(3), Karaikudi and The Income Tax Officer, Ward I(5), Vellore and The Assistant Commissioner of Income Tax, Circle I, Thirunelveli and The Assistant Commissioner of Income Tax, Circle II, Madurai and The Assistant Commissioner of Income Tax, Circle I, Tuticorin

WP(MD)/12001/2013

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The case involves two writ petitions filed by a group of petitioners against various Income Tax Officers, seeking a writ of Mandamus to direct the respondents to grant a tax refund under Section 10(10C) of the Income Tax Act. This section provides that an amount received by an employee on voluntary retirement, up to five lakhs, is not to be treated as taxable income. The petitioners argued that they were similarly situated to other employees who had previously received such exemptions, which had been upheld by the High Court and were pending at the Supreme Court. The respondents did not contest the applicability of the previous judgments but noted the pending Supreme Court decision.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 683113 (HC-MADURAI)
• Appeal Type: Others
• Pronouncement Date: 24-07-2013
• Assessment Year: misc
• Other Referred Cases: W.A.(MD)Nos.1098 to 1155 of 2011, W.A.(MD)No.1489 of 2011
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: R KRISHNAMOORTHY
• Assessee Lawyers: M RAJESWARI
• Keywords: Refund; Taxable income; Voluntary Retirement Scheme; Writ of Mandamus
• Section: 10(10C)

Judgement Text

"1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 24.07.2013 CORAM THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN W.P.(MD)Nos.12001 and 12002 of 2013 W.P(MD)No.12001 of 2013: 1.S.Ramani 2.S.Sambandam 3.M.Vaidyanathan 4.K.R.Muthukaruppan 5.P.L.Subramanian 6.T.Alagappan 7.N.Narayanan 8.M.Chandran 9.K.Visalakshi 10.L.Meyyappan ... Petitioners Vs. 1.The Income Tax Officer, Ward I(2), Kumbakonam. 2.The Income Tax Officer, Ward II(2), Tiruchirappalli. 3.The Income Tax Officer, Ward I(2), Pudukottai. 4.The Income Tax Officer, Ward I(1), Karaikudi. 5.The Income Tax Officer, Ward I(2), Karaikudi. 6.The Income Tax Officer, Ward I(3), Karaikudi. 7.The Income Tax Officer, Ward I(5), Vellore. ... Respondents Prayer: Petition filed under Article 226 of the Constitution of India praying for the issuance of a writ of Mandamus to direct the respondents to grant the refund eligible under Section 10(10C) of Income Tax Act, to the petitioners as amount received by an employee on his Voluntary Retirement Scheme an amount of five lakhs is not treated as taxable income. For Petitioners ... Ms.M.Rajeswari for Mr.S.M.S.Johnny Basha For Respondents ... Mr.R.Krishnamoorthy https://hcservices.ecourts.gov.in/hcservices/ 2 W.P(MD)No.12002 of 2013: 1.M.Sankaranarayanan 2.RM.Kanappan 3.E.Muthusamy 4.P.Thirunavukkarasu 5.C.Ramu 6.Mohamed Nazir 7.C.Sankarasubramanian ... Petitioners Vs. 1.The Assistant Commissioner of Income Tax, Circle I, Thirunelveli. 2.The Assistant Commissioner of Income Tax, Circle II, Madurai. 3.The Assistant Commissioner of Income Tax, Circle I, Tuticorin. ... Respondents Prayer: Petition filed under Article 226 of the Constitution of India praying for the issuance of a writ of Mandamus to direct the respondents to grant the refund eligible under Section 10(10C) of Income Tax Act, to the petitioners as amount received by an employee on his Voluntary Retirement Scheme an amount of five lakhs is not treated as taxable income. For Petitioners ... Ms.M.Rajeswari for Mr.S.M.S.Johnny Basha For Respondents ... Mr.R.Krishnamoorthy COMMON ORDER Mr.R.Krishnamoorthy, learned Counsel takes notice for the respondents. 2. By consent, the writ petition itself is taken up for final disposal. 3. Aggrieved by the act of not granting refund under Section 10(10C) of the Income Tax Act, the petitioners are before this Court. 4. Ms.M.Rajeswari, learned Counsel for the petitioners would submit that earlier, similarly placed persons got a direction to grant exemption under Section 10(10C) of the Income Tax Act, before the learned Single Judge of this Court and the same was confirmed by the Division Bench of this Court in W.A.(MD)Nos.1098 to 1155 of 2011 on 12.11.2011 and also in W.A.(MD)No.1489 of 2011, on 08.03.2012, the order of the learned Single Judge granting exemption, was also confirmed. 5. The learned Standing Counsel appearing for the respondents would submit that the order of the learned Single Judge granting exemption was confirmed by the Division Bench of this Court; however, a Special Leave Petition has been filed and the same has been admitted and the same is pending before the Honourable Supreme Court. https://hcservices.ecourts.gov.in/hcservices/ 3 6. Heard the learned Counsel for the petitioners and the learned Standing Counsel appearing for the respondents and perused the materials available on record. 7. It is not in dispute with regard to granting of exemption by the learned Single Judge is confirmed by the Division Bench of this Court. Even though the learned Standing Counsel appearing for the respondents would submit that there is a Special Leave Petition pending before the Honourable Supreme Court, as on date, there is no order of stay. 8. In view of that, following the above decisions, both the writ petitions are allowed granting exemption to the petitioners as prayed for. Sd/- Assistant Registrar True copy/ Sub Assistant Registrar To: 1.The Income Tax Officer, Ward I(2), Kumbakonam. 2.The Income Tax Officer,Ward II(2), Tiruchirappalli. 3.The Income Tax Officer, Ward I(2), Pudukottai. 4.The Income Tax Officer,Ward I(1), Karaikudi. 5.The Income Tax Officer, Ward I(2), Karaikudi. 6.The Income Tax Officer, Ward I(3), Karaikudi. 7.The Income Tax Officer,Ward I(5), Vellore. 8.The Assistant Commissioner of Income Tax,Circle I, Thirunelveli. 9.The Assistant Commissioner of Income Tax, Circle II, Madurai. 10.The Assistant Commissioner of Income Tax,Circle I, Tuticorin. +1cc to Mr.S.M.S.JOHNNY BASHA Advocate SR.No.37486. +1cc to Mr.R.KRISHNAMOORTHY Advocate SR.No.37865, 37864. TS/12.08.2013/3P-14C W.P.(MD)Nos.12001 and 12002 of 2013 24.07.2013 https://hcservices.ecourts.gov.in/hcservices/ "