DEVDAS RAMA MANGALORE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Rule, returnable forthwith. By consent and at the request of the Counsel, the petition is taken up for final disposal. This petition filed by a Senior Citizen challenges the order dated 4 February 2013 of the respondent revenue in dismissing the application for condonation of delay under Section 119(2)(b) of the Income Tax Act, 1961 ("the Act") for claiming refund of tax paid. This application was filed by the petitioner seeking refund of tax deducted at source (TDS) by Reserve Bank of India (RBI) on the payment made to him in the year 2004 when he opted for the Optional Early Retirement Scheme (Scheme).

(2.) The RBI while making the payment to the petitioner under the Scheme had deducted as tax at source an amount of Rs. 1,64,117/-. However, in his return of income for assessment year 2004-05 filed on 15 October 2004 the petitioner did not claim any refund of tax as TDS paid by RBI on his behalf nor was the credit on tax utilized to discharge tax payable on any other income.

(3.) It was only on 8 May 2009 that the Central Board of Direct Taxes (CBDT) issued a Circular clarifying that the employees of RBI who had opted for early retirement scheme during the year 2004-05 would be entitled for benefit of exemption under Section 10(10C) of the Act. The Supreme Court also in Chandra Ranganathan and ors. vs. Commissioner of Income Tax,2009 326 ITR 49 held that the amounts received by retiring employees of Reserve Bank of India opting for the scheme are eligible for exemption under Section 10(10C) of the Act. In view of the above the petitioner filed a revised return of income on 08 September 2011 claiming benefit of exemption available to the Scheme under Section 10(10C) of the Act which consequently would result in refund of Rs. 1.64 lacs paid by RBI as TDS. However, there was no response to the above revised return of income from the respondent-revenue.