KAYAMKULAM NTPC EMPLOYEES UNION Vs. NTPC LTD.

JUDGEMENT

(1.) The petitioner is a registered trade union of the workmen of the 1st respondent National Thermal Power Corporation Limited, now known as NTPC Limited. The members of the petitioner are provided with residential quarters by their employer in a village near Kayamkulam town. The petitioner submits, its members are paying rent to the 1st respondent at market rate and no concession in the matter of rent, is given to them. But, while the 1st respondent employer is deducting tax at source under Section 197 of the Income Tax Act, the alleged concession given to them in the matter of payment of rent, is also reckoned along with the income. The same is done, relying on Ext.P1 amendment to the Rules. It is also pointed out that while tax is deducted at source, from the officers, the concession granted to them in the matter of rent while providing accommodation, is not being taken into account. So, this writ petition is filed by the petitioner, seeking the following reliefs:

(2.) Heard the learned Central Government Standing counsel appering for the 2nd respondent also. He submits that the method of valuation provided under rule 3 does not relieve the petitioner from the liability under Section 17(2)(ii) of the Income Tax Act. Even assuming rule 3, concerning valuation of perquisites, does not apply to the concessions granted in areas other than cities, still, the assessing officer is competent to assess the value of the perquisites, by virtue of the substantive provision in the Act. It is also pointed out by him that when Clause 2(a) is read with Clause 2(b) of Table-I of Ext. P1, the reference in Sub-clause (ii) of Clause 2(a) of Table-I to other cities, should be read as to other places. This submission is made, relying on the fact that Clause 2(b) of Table-I does not refer to any city or village. Therefore, 7.5 per cent of the salary shall be reckoned as the value of the perquisites regarding residential accommodation in all places, except in cities with a population of more than four lakhs, it is submitted. The learned counsel further points out that as long as the members of the petitioner do not get certificates from the assessing officer under Section 197 of the Act, the employer is bound to deduct the tax at source, according to its judgment. If the petitioner is aggrieved by such deduction, its members have to work out their remedies under the provisions of the Act, by filing returns and claiming refund, it is pointed out.

(3.) The contention of the petitioner regarding discrimination, cannot be upheld. If tax is deductible from the perquisites enjoyed by the workmen, they cannot resist it, saying that tax is not deducted from the Officers. The grievance of the petitioner that the employer is. deducting tax unauthorisedly and without the authority of law, need not be adjudicated in this writ petition. The petitioner's members have got a right to move the assessing officer under Section 197 of the Income Tax Act for issuing a certificate, concerning the liability of the workmen for deduction of tax at source in relation to the perquisites of housing accommodation provided by their employer.