Shri G.P. Ghore, S/o Late Shri Brijlal Ghore and Shri P.S. Rao, S/o Late Shri Sitaramayya and Shri G.N. Singh, S/o Shri I J. Singh and Shri V. Ramteke, S/o Shri B. Ramteke and Shri T.A. Rajakrishnan, S/o Late Shri T.P. Addapan and Shri L.L. Choubey, S/o Late Shri Jagannathprasad Choubey and Shri R.S. Choudry, S/o Late G.R. Choudhry and Shri D.R. Nayak, S/o Shri Dewar Ram Nayak and Shri U.S.S. Nair, S/o Late Shri C. Raman Nair and Shri V.K. Sharma, S/o Shri D.P. Choubey and Shri J.D. Sahu, S/o Shri P.R. Sahu and Shri S.M. Sharma, S/o Late Shri U.N. Sharma and Smt. K.R. Daryani, W/o Shri R. Daryani and S.M. Joshi, W/o Shri M.J. Joshi and Shri D.R. Maru, S/o Shri J.V. Maru V. Union of India through Secretary, Department of Revenue, Ministry of Finance, North Block, New Delhi and The Central Board of Direct Taxes, through Chairman, North Block, New Delhi and The Principal Chief Controller of Accounts, Central Board of Direct Taxes, IXth Floor, Lok Nayak Bhawan, Khan Market, New Delhi and Additional Commissioner of Income-tax, Range-1, Central Revenue Building, Civil Lines, Raipur and The Assistant Commissioner of Income-tax, Circle Bhilai, Aaykar Bhawan, Civic Centre, Bhilai

WPS/4887/2014

AI Insights

The case involves a group of petitioners, all employees of the Income Tax Department, who were allotted residential accommodation by the Bhilai Steel Plant. They claimed House Rent Allowance (HRA) based on a Circular dated 5/8.9.1997 issued by the Central Board of Direct Taxes (CBDT). However, a subsequent Circular dated 2.1.1998 clarified the conditions under which HRA could be claimed, specifically that the rent paid should exceed 10% of the basic pay or the amount of HRA admissible, whichever is less. The petitioners argued that the 1998 Circular did not apply to them as it was not made known prior to their case at the Tribunal and did not supersede the 1997 Circular. The Tribunal and the High Court found that the petitioners did not meet the conditions of the 1998 Circular as their rent was below the specified percentage of their basic pay, leading to the dismissal of their claims.

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 818434 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 24-02-2015
• Assessment Year: misc
• Other Referred Cases: State of Punjab vs. Faqir Singh (White Washer)
• Laws Referred To: Article 226 of the Constitution of India
• Result in Favour of: Revenue
• Court: HIGH COURT
• Assessee Lawyers: MK SINHA; ANAND DADARIYA
• Keywords: Central Board of Direct Taxes; House Rent Allowance; Income Tax Department; Residential Accommodation; Bhilai Steel Plant
• Section: 5(c)

Judgement Text

"r Benc^ IN THE HON'BLE HIGHCOURT OF CHHATTISGARH AT BILASPUR PETITIONER ^'^/ @s/ 7^' a^- W.P.(SlNo. M ^^72014 1. Shri G.P. Ghore, S/o Late Shri Brijlal Ghore, R/o Qr. No.7/A, Street-46, Sec-10, Bhilai ( Present Address: House No. 149, Anand r* Nagar, PS. Telibandha, Raipur, PIN 492^01 ^-re^- 2. Shri P.S. Rao/\"S/o Late Shri - Sitaramayya, ,\"SR7o Qr. No. 5/A, Street-45,-Sec-10, Bhilai 3. Shri G.N. Singh, S/o Shri I J. ^^. 5-2. ye-^- Singh.R/o Qr. No. 8/A, Street No. ^ 4— 40, Sec-5, Bhilai 4. Shri V. Ramteke, S/o Shri B. , Ramteke, R/o Qr. No.2/A, Street- ^e fe-> /~' ?- 1, Sector-8, Bhilai 5. Shri T.A. Rajakrishnan, S/o Late Shri T.P. Addapan, R/o Qr. No.6/0, Street-^36, Sector-9, Bhilai 6. Shri L.L. CKubey, S/o Late Shri ^e - £' Jagannathprasad Choubey, R/o Qr. No. 1B, Street no. 24, Sector- ,8, Bhilai d ^. '^ A^ e,^ -7 4t-A 4- -<- f^ i'1 TQf- 3--.. er ~r°^' ^- is- 7 ^ 6S r e^»^ R. Daryani, R/o Qr. No. treet-40, Sector-10, BhilaL 1/B, ^e-^J y&<«^ TT^BT S.M. Joshi W/o Shri M.J.? Joshi R/o Qr. No. 10/D, Street ^PA^Sector-5, Bhilai 15. Shri D7R—Ritaru, S7o Shri J.V. Maru, R/o Qr. No.12/B, Street -29, Sec-7, Bhilai As stated'tn the cause title above. •*•< '; '. M HIGH COURT OF CHHATTISGARH. B1LASPUR DB: HON'BLE SHRI NAVIN SINHA. ACTING C.J. & HON'BLE SHRI PRITINKER DIWAKER, J. PETITIONERS RESPONDENTS Writ Petition (S) No.4887 of 2014 Shri G.P. Ghore and others Versus Union of India and others WRIT RE5TtrtONlL lE)E8ACT'ICLE226;©ISTHECONSTITUTION OF INDl -yy.f ,.: Appearance: Shri M.K. Sinha, Advocate for Petitioners 1 to 6, 8 to 13 and 15 to17. - Petitioner-18, Shri S. Rajeswara Rao appears in person. Shri Anand Dadariya, AdvQcate for the Respondents. ORDER (24.02.2015) NAVIN SINHA, ACTING C.J. 1. The writ petition assails order dated 4.3.2014 passed by the Central Administrative Tribunal, Jabalpur Bench, Circuit Sitting: Bilaspur dismissing O.A. No. 268 of 1998. The subsequent order dated 22.4.2014 dismissing Review Application No. 203/00054 of 2014 arising out of order dated 4.3.2014 is also assailed.* 2. Shri M.K. Sinha, Advocate represents Petitioners I to 6, 8 to 13 and 15 to 17. Petitioners 7 and 14 have been deleted on 9.2.2015. Petitioner No. 18 has appeared in person. '