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Issues Involved:
1. Maintainability of writ petitions due to misjoinder of parties and causes of action. 2. Requirement of separate court fee for each petitioner. 3. Impleading of salary disbursing officers as respondents. 4. Availability of alternative remedy. 5. Taxability of leave encashment amount. 6. Taxability of various allowances (house rent allowance, city compensatory allowance, bad climate allowance, shift allowance, incentive bonus). Summary: 1. Maintainability of Writ Petitions: The court ruled that even though each writ petition was jointly filed by multiple persons with separate and distinct causes of action, they were maintainable because the questions involved were common and purely legal, without requiring investigation of material facts. The court referred to the precedent set in Management, S.C.Co. Ltd. v. Industrial Tribunal, which allowed single writ petitions when common questions of law or fact were involved. 2. Requirement of Separate Court Fee: The court upheld the objection that separate court fees should be collected for each petitioner, citing the Supreme Court's decision in Mota Singh v. State of Haryana. The court allowed the petitioners the option to amend the petition by striking off the names of petitioners other than the first petitioner if they were not inclined to pay separate court fees. 3. Impleading of Salary Disbursing Officers: The court dismissed the objection regarding the impleading of salary disbursing officers, stating that they were necessary parties since they were responsible for deducting tax from the various allowances. 4. Availability of Alternative Remedy: The court ruled that the availability of an alternative remedy was not fatal to the invocation of the court's jurisdiction under Article 226 of the Constitution, especially since the questions involved were general and recurring, affecting numerous employees. 5. Taxability of Leave Encashment Amount: The court held that the leave encashment amount falls within the definition of "profit in lieu of salary" u/s 17(3)(ii) of the I.T. Act. The court reasoned that leave encashment is a form of recompense for services rendered by the employee and is thus taxable. 6. Taxability of Various Allowances: - House Rent Allowance: The court ruled that house rent allowance paid to employees living in their own houses is taxable and not exempt u/s 10(13A). - City Compensatory Allowance, Bad Climate Allowance, Shift Allowance, and Incentive Bonus: The court held that these allowances are "perquisites" within the meaning of s. 17(2) and are therefore taxable receipts. The court dismissed arguments that these allowances were merely reimbursements for expenses incurred in the discharge of official duties. Conclusion: The writ petitions were dismissed, and the court upheld the taxability of the leave encashment amount and various allowances as per the provisions of the I.T. Act. No costs were awarded, and an advocate's fee of Rs. 100 was set for each case.
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