SHANTILAL BAGORA Vs. STATE BANK OF INDORE

JUDGEMENT

(1.) THE petitioners are ex-employees of the State Bank of Indore-respondent No. THErein (hereinafter referred to as "bank"). All these petitioners who were working in various posts in respondent No. 1-bank have taken voluntary retirement, pursuant to voluntary retirement scheme introduced by the bank. It is the case of the petitioners that strictly in terms of Section 192(2A) of the Income-tax Act, 1961, read with Rule 21AA of the Income-tax Rules, 1962, each petitioner furnished particulars in the prescribed forms (Form No. 10E) to the bank to enable the bank to make appropriate deduction of tax while computing the amount payable to each petitioner and also allowed each petitioner to take benefit contained in Section 89(1) ibid. THE petitioners complained that when they received the certificates (annexure 8 collectively) from the bank, it was notified in these certificates that no benefit of Section 89(1) of the Act was given to the petitioners. It is this action of the bank which has given rise to filing of this writ and seeking quashing of the impugned certificates (annexure 8) collectively issued to each petitioner declining to grant them the benefit of Section 89(1) ibid.

(2.) THE bank as well as the Income-tax Department have filed their return.

(3.) IN my opinion, in a case of this nature, Section 89(1) of the Act itself has provided a statutory remedy for the petitioner (as an assessee) to make an application to his Assessing Officer claiming such relief which according to him he is/they are entitled to claim under Section 89(1) and on satisfying the assessing authority, they become entitled to get relief. Once an application to that effect is made by the assessee, then it is for the Assessing Officer to examine the case of each assessee in the light of what he has stated in the application and then to find out whether he is entitled to claim the benefit of Section 89(1) ibid. IN case the Assessing Officer feels that the assessee is entitled to get the benefit then in that event, it is the duty of the Assessing Officer to grant such relief as prescribed under the Act.