2008 (5) TMI 143 - HC - Income Tax

Notices issued proposing to bring within the ambit of tax the amount of interest that has accrued to the petitioners on the credit balance maintained by the employees of the Board in their provident fund account after their retirement - petitioners pray for quashing notices - controversy herein is squarely covered in favour of the petitioners pursuant to a Division Bench judgment of this HC in case of Sh. Subhash Bansal and others - notices for initiating reassessment proceedings are quashed

Summary

The High Court of Punjab and Haryana quashed the Income Tax Authorities' notices dated 29.3.2007 and 24.10.2007 regarding the taxation of interest accrued on provident fund accounts after retirement. The decision was in favor of the petitioners based on a previous Division Bench judgment. The writ petition was allowed, and the notices were quashed with no costs.