2016 (3) TMI 1291 - HC - Income Tax

Claiming cash benefits on sumptuary allowance and encashment of leave and leave salary - recommendations made by Shetty Commission acceptability - Held that - This is not a matter which can be ironed through the judicial process either under Article 226 of the Constitution or through an intra-court appeal arising from the writ petition. Learned single Judge found that the issue relating to acceptance of Shetty Commission recommendations and its enforcement is no longer res integra. This was stated making reference to the decision of the Apex Court in Maharashtra State Judges Assn. v. High Court of Bombay 2008 (12) TMI 794 - SUPREME COURT and to the judgment of this Court in Asha P. v. State of Kerala 2009 (11) TMI 994 - KERALA HIGH COURT . The learned single Judge rightly refused to accept the contention of the Association that the acceptance of the recommendations of the Shetty Commission Report has to be considered as declaration of law by the Hon ble Supreme Court for the purpose of its enforcement. Those recommendations are matters which may generate room for relief in cases where no rules have been framed; in which event, the learned single Judge has rightly found that the remedy does not lie before this Court.

Summary

Issues:
Challenge to dismissal of writ petition for cash benefits on sumptuary allowance and encashment of leave and leave salary based on Shetty Commission recommendations.

Analysis:
The writ appeal was filed by the Kerala Judicial Officers' Association challenging the dismissal of their writ petition seeking cash benefits on sumptuary allowance and encashment of leave and leave salary. The Association's claim was based on the recommendations of the Shetty Commission, which had been accepted by the Supreme Court of India through various judgments containing specific directions. The Court noted that the issue of acceptance and enforcement of the Shetty Commission recommendations had already been settled by previous judgments, citing the decision in Maharashtra State Judges Assn. v. High Court of Bombay and a judgment of the Kerala High Court in Asha P. v. State of Kerala. The Court found that the matter could not be resolved through judicial processes under Article 226 of the Constitution or through an intra-court appeal from the writ petition.

The Court, after considering the arguments presented by the appellant and the Income Tax Department, as well as the Assistant Solicitor General of India, agreed with the findings of the learned single Judge. The Court concurred that the acceptance of the Shetty Commission recommendations did not amount to a declaration of law by the Supreme Court for enforcement purposes. It was highlighted that the recommendations might provide relief in cases where no rules had been framed, but in such instances, the remedy did not lie before the Court. Therefore, the Court upheld the decision of the learned single Judge in refusing to accept the Association's contention regarding the enforcement of the Shetty Commission recommendations.

In conclusion, the Court held that the writ appeal had to fail based on the reasons discussed. Additionally, the Court mentioned that a Division Bench had attempted to explore the issue for a possible re-look by the executive during the appeal's pendency. However, considering the limited extent of power delegated under the Income Tax Act and the nature of the matter, the Court determined that the case was not suitable for judicial review. Consequently, the Court dismissed the writ appeal, affirming the decision of the learned single Judge.