KAMAL KUMAR KALIA Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has preferred the present writ petition to seek the following reliefs:

(2.) The case of the petitioner is that the petitioners are retired employees of various nationalised banks. The grievance of the petitioners is that in respect of the leave encashment amounts drawn by them upon their retirement, they are subject to payment of income tax except to the extent the same is exempted under Section 10 (10 AA) of the IT Act. Sub-section 10AA of Section 10 of the Income Tax reads as follows:

(3.) The submission of the petitioners is that the employees of the Public Sector Undertaking and Nationalised Banks are discriminated against vis a vis Central Government and State Government employees since the Central Government and State Government employees are granted complete exemption in respect of the cash equivalent of the leave salary for the period of earned leave standing to their credit at the time of their retirement - whether on superannuation or otherwise. However, all others, including the employees of the Public Sector Undertaking and Nationalised Banks are granted exemption only in respect of the amount of leave salary payable for a period of 10 months, subject to the limit prescribed. He submits that the government has issued a notification in terms of Clause (ii) of sub-section 10AA of Section 10 whereby the limit to which such income is exempted is prescribed as Rs.3 lacs. The submission of the petitioner is that the last such notification was issued on 31.05.2002 which reads as follows: