A. BALAKRISHNAN S/O LATE APPASWAMY Vs. THE GENERAL MANAGER, HINDUSTAN MACHINE TOOLS LTD. AND THE COMMISSIONER, INCOME TAX

JUDGEMENT

(1.) PETITIONER was an employee in the 1st respondent - Organization M/s. HMT Ltd. Petitioner availed of a voluntary retirement scheme as on 31.3.2003 that was mooted by the employer and as a result he received an amount of Rs. 6,01,270/ -. The employer at the time of paying this amount deducted a sum of Rs. 29,331/ - at source under the provisions of Section 192 of the Act and an acknowledgment in Form 16 -A was also issued to the petitioner evidencing the deduction of this amount from the amount paid to him and remitted the same to the credit of the Income Tax Department.

(2.) IT is the version of the petitioner that in respect of the amount that he has received in terms of the provisions of Section 10(10)(c), 173(1) and 89 of the Income Tax Act, 1961 [for short the Act] read with Rules 2 (A)(A), the petitioner was not liable for payment of any tax and the amount of Rs. 29,331/ - deducted on the amount of Rs. 1,01,270/ - purporting to be on the salary part of the assessee was to be refunded even in terms of the law laid down by this Court in the case of The Commissioner of Income Tax, Bangalore and Anr. v. Surendra Prabhu P reported in 2005 (59) KarLJ 609 [HC][DB].

(3.) IT is aggrieved by the action of the respondents and at this stage, the petitioner has filed this writ petition, inter alia, seeking for quashing of the endorsement at Annexure -E and for issue of a consequential mandamus to direct the respondent No. 2 to refund the excess deduction of Rs. 29,331/ - deducted by his employer and remitted to the Income Tax Department.