Madurai v. Pr.sl.sathappan

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 28.03.2019 CORAM: THE HONOURABLE DR. JUSTICE VINEET KOTHARIand THE HONOURABLE MRS.JUSTICE T.KRISHNAVALLI W.A.(MD) No.1030 of 2015 and 1012 to 1015 of 2018 and and 1.THE INCOME TAX OFFICER, WARD NO.1(3), ARUNACHALAM CHETTIAR STREET, KARAIKUDI. 2.THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE II, C.R.BUILDINGS, V.P.RATHINASAMY NADAR ROAD, MADURAI. ... APPELLANTS/RESPONDENTS IN ALL WRIT APPEALS -VS- PR.SL.SATHAPPAN K.VENKATACHALAM... RESPONDENT/PETITIONER IN WA(MD). 1012/ 2018 AN.NARAYANAN ... RESPONDENT/PETITIONER IN WA(MD). 1013/ 2018 A. THENAPPAN ... RESPONDENT/PETITIONER IN WA(MD). 1014/ 2018 S. SUBRAMANIAN ... RESPONDENT/PETITIONER IN WA(MD). 1015/ 2018 PRAYER:Appeal is filed under Clause 15 of Letters Patent, to set aside the order dated 27.03.2014 made in W.P.(MD) No.8984 of 2011,order dated 09.04.2018 made in W.P.(MD) No.7204 of 2010,order dated 09.04.2018 made in W.P.(MD) No.9000 of 2010,order dated 09.04.2018 made in W.P.(MD) No.9001 of 2010, order dated 09.04.2018 made in W.P.(MD) No.9253 of 2010, and to setaside the order on the following amongst other grounds, on the fileof this Court. https://hcservices.ecourts.gov.in/hcservices/ Prayer in WP(MD). 8984/ 2011 : Constitution of India, praying this Court To issue a Writ ofMandamus, directing the Respondents to grant exemption under Section10(10C) of Income Tax Act as requested by the Petitioner (PAN No. isAVT PS 5547 E) in his request dated 15.12.2006 and receipt dated27.01.2011 in respect of Assessment Year 2004-2005. Prayer in WP(MD). 7204/ 2010 : Writ Petition is filed under Article 226 of theConstitution of India, praying this Court To issue a WRIT OFCERTIORARIFIED MANDAMUS calling for the records relating to theimpugned order of the 1st respondent dated 20.05.2010 in GIR/PA No.ABAPV 9861F and quash the same and consequently forbear therespondents, their men, agents, servants or any one claiming underthem from in any manner making any demand or recovering any moneyforcibly or otherwise from the petitioner for the assessment year2004-2005. Prayer in WP(MD). 9000/ 2010 : Writ Petition is filed under Article 226 of the Constitutionof India, praying this Court To issue a WRIT OF CERTIORARIFIEDMANDAMUS calling for the records relating to the impugned order ofthe 1st respondent in GIR PA No. 287N/ ABKPN 9062E dated 05.03.2010and quash the same and consequently forbear the respondents, theirmen, agents, servants or any one claiming under them from in anymanner making any demand or recovering any money forcibly orotherwise from the petitioner for the assessment year 2004-2005. Prayer in WP(MD). 9001/ 2010 : Writ Petition is filed under Article 226 of the Constitutionof India, praying this Court To issue a WRIT OF CERTIORARIFIEDMANDAMUS calling for the records relating to the impugned order ofthe 1st respondent in GIR No. 145T PA No. ABOPT 1942 M dated12.05.2009 and quash the same and consequently forbear therespondents, their men, agents, servants or any one claiming underthem from in any manner making any demand or recovering any moneyforcibly or otherwise from the petitioner for the assessment year2004-2005. Prayer in WP(MD). 9253/ 2010 : Writ Petition is filed under Article 226 of the Constitutionof India, praying this Court To issue a WRIT OF CERTIORARIFIEDMANDAMUS calling for the records relating to the impugned order ofthe 1st respondent in GI PA No. AXSPS9681A dated 20.04.2010 andquash the same and consequently forbear the respondents, their men,agents, servants or any one claiming under them from in any mannermaking any demand or recovering any money forcibly or otherwise fromthe petitioner for the assessment year 2004-2005. https://hcservices.ecourts.gov.in/hcservices/For Appellants : Mrs.S.Srimathy, learned standing counsel in all Writ Appeals Prayer in WP(MD). 9253/ 2010 : Writ Petition is filed under Article 226 of the Constitutionof India, praying this Court To issue a WRIT OF CERTIORARIFIEDMANDAMUS calling for the records relating to the impugned order ofthe 1st respondent in GI PA No. AXSPS9681A dated 20.04.2010 andquash the same and consequently forbear the respondents, their men,agents, servants or any one claiming under them from in any mannermaking any demand or recovering any money forcibly or otherwise fromthe petitioner for the assessment year 2004-2005. https://hcservices.ecourts.gov.in/hcservices/For Appellants : Mrs.S.Srimathy, learned standing counsel in all Writ Appeals For Respondent : No Appearance in Writ Appeal(MD)No.1030 OF 2015 : Mr. VR. Shanmuganathan, in Writ Appeal(MD)Nos.1012 to 1015 OF 2018 COMMON JUDGEMENT [Judgment of the Court was delivered by DR.VINEET KOTHARI, J.] The Revenue Department has filed these appeals aggrieved by theorder passed by the learned Single Judge, by which, the learnedSingle Judge allowed the writ petitions filed by therespondents/assessee, who claimed exemption under Section 10(10C) ofIncome Tax Act, 1961, with respect to the amount received by therespondents/assessees on voluntary retirement, who was in service ofBank. 2.The said provision of Section 10(10C) of the Act allows suchexemption in respect of the amount received or receivable by theemployee of public sector companies or other companies or societiesor State Government or Central Government, etc. subject tofulfilment of conditions as prescribed under Rule 2 B of the IncomeTax Rules, 1962. 3.The learned counsel appearing for the appellants/Revenuefairly submits that on merits, the controversy has been concluded byseveral decisions against the Revenue Department viz., in theleading judgment rendered by Bombay High Court in the case ofCommissioner of Income Tax Vs. Koodathil Kallyatan Ambujakshanreported in (2009) 309 ITR 113 and also by the Madras High Courtitself in the case of S.Parthasarathy V. The Assistant Commissionerof Income Tax in Tax Case (Appeal) Nos.1210, 1217, 1249 and 1250 of2009 decided by the Division Bench of this Court dated 23.12.2009,in which, it was held that such amount received on voluntaryretirement by the assessee, the retiring employees would be exemptedunder Section 10(10C) of the Act. 4.The learned counsel for the Revenue however pointed out thatin one of the S.L.P. filed before the Hon'ble Supreme Court by suchassessee viz., M.Chelladurai Karaikudi Vs. Commissioner of IncomeTax, Madurai in Civil Appeal No.51 of 2010, while the appeal wasdismissed by the Hon'ble Supreme Court, the questions of law wereleft open. On the core question, the learned counsel for theAppellants/Revenue however could not point out any such material onthe basis of which the exemption to the respondents assessees underSection 10(10C) of the Act deserved it to be denied in the presentcase also.https://hcservices.ecourts.gov.in/hcservices/ 5.As far as the question of grant of exemption, an amountreceived on the for voluntary retirement from the institution stipulated in the said provision is argued, it is no longer res-integra and has been concluded by a series of judgments by differentHigh Courts including the Madras High Court, which has been approvedby the Hon'ble Supreme Court as well and one such order is producedby the learned counsel for the appellants herself in the case ofChandra Renganathan and other Vs. CIT, Chennai in Civil AppealNos.6997-7002 of 2009 decided by the Apex Court on 21.10.2009. Therelevant portion of the order of the Hon'ble Supreme Court is quotedbelow for ready reference, which dealt with the same schemeannounced by RBI. 5.As far as the question of grant of exemption, an amountreceived on the for voluntary retirement from the institution stipulated in the said provision is argued, it is no longer res-integra and has been concluded by a series of judgments by differentHigh Courts including the Madras High Court, which has been approvedby the Hon'ble Supreme Court as well and one such order is producedby the learned counsel for the appellants herself in the case ofChandra Renganathan and other Vs. CIT, Chennai in Civil AppealNos.6997-7002 of 2009 decided by the Apex Court on 21.10.2009. Therelevant portion of the order of the Hon'ble Supreme Court is quotedbelow for ready reference, which dealt with the same schemeannounced by RBI. “During the course of hearing of these appeals, itwas brought to our notice that by the subsequent letterdated 8[th] May, 2009, issued by the Central Board ofDirect Taxes, it was indicated that the matter had beenreviewed on the basis of the judgment of the Bompay HighCourt dated 4[th] July, 2008, in the case of Commissionerof Income Tax Vs. Koodathil Kallyatan (2008) 219 CTR(Bom) 80 (2008) 12 DTR 138 and it was held that amountsreceived by retiring employees of the RBI would beeligible for exemption under the aforesaid provisions ofthe Income Tax Act. On behalf of the Union of India andthe Commissioner of Income Tax, the respondent herein,it was submitted that in view of the said Circular, therespondent herein, it was submitted that in view of thesaid Circular, the respondent would allow the benefit ofdeduction to the appellants under Section 10(10C) of theIncome Tax Act, 1961, as far as the retired employees ofthe Reserve Bank of India are concerned. Having regard to the above, the appeals succeed andare allowed. The impugned order passed by the HighCourt is set aside and that of the Tribunal is restored.There will be no order as to costs.” 6.In view of the aforesaid judgment, we do not find any meritin the present writ appeals filed by the Revenue. The same areliable to be dismissed and the same are accordingly, dismissed.Consequently, connected miscellaneous petitions are closed. Nocosts. // True Copy // Arul 1.THE INCOME TAX OFFICER, WARD NO.1(3), ARUNACHALAM CHETTIAR STREET, KARAIKUDI. 2.THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE II, C.R.BUILDINGS, V.P.RATHINASAMY NADAR ROAD, MADURAI. 1CC TO MR. S.M.S. JOHNNY BASHA, ADVOCATE SR 57683 5CC'S TO M/S. S. SRIMATHY,STANDING COUNSEL DEPARTMENT FOR INCOME TAX. SR 57681, 57682, 58031, 58032, 58033 4CC TO MR. VR. SHANMUGANATHAN, ADVOCATE SR 57690, 57691, 57692, 57693 KK24/04/20195P 13C W.A.(MD) No.1030 of 2015 and 1012 to 1015 of 2018 and M.P.(MD) No.1 of 2015 and 28.03.2019 C.M.P.(MD) Nos.7103 to 7106 of 2018