S R KOSHTI Vs. COMMISSIONEER OF INCOME TAX

JUDGEMENT

(1.) Rule. Mrs.M.M.Bhatt, the learned standing counsel for the respondent waives service of rule. When the notice was issued on 23rd August 2004, the Court had issued the notice for final disposal. Hence, in the light of the peculiar facts of the case, the petition is taken up for final hearing and disposal.

(2.) The petitioner, an individual, challenges, by way of this petition under Articles 226 and 227 of the Constitution of India, the orders made by the Commissioner of Income Tax, Ahmedabad VII, Ahmedabad under (the Act) on 29th March 2004.

(3.) The petitioner was working as Assistant Manager with Industrial Financial Corporation of India Limited (the employer). On an offer being made by the employer, the petitioner opted under the Voluntary Retirement Scheme and received a compensation of Rs.7,50,000=00. Admittedly, when the payment of the said amount was made by the employer, the employer did not inform the petitioner regarding the exemption from tax that the petitioner would be entitled and accordingly, in absence of the necessary clarification or the certificate from the employer, the petitioner furnished the return of income on 31st July 2001 for Assessment Year 2001 - 2002. It is the say of the petitioner that, subsequently, the petitioner became aware that he was entitled to certain portion of the income so received as being exempt under Section 10(10C) of the Act, but the employer had deducted tax at source on the entire amount by treating the same as salary and accordingly, the tax deduction certificate in Form No.16 had been furnished by the employer, which was annexed by the petitioner to the return of income filed by the petitioner. Accordingly, the petitioner had declared a total income of Rs.9,98,182=00 on the basis of tax deduction certificate issued by the employer in Form No.16 and claimed a refund of Rs.12,219=00.