CONSTITUTION OF INDIA, 1950

Article 226

Writ - Entitlement to claim deduction under section 10(10 C)(viii) and under section 89(1) - Amounts received as part of VRS -

Present petition was filed pleading to quash and to issue a writ of mandamus directing authorities not to levy tax from the petitioner since he was entitled to the relief under section 89(1). Petitioner had filed return initially but he was issued with an intimation under section 143(1) denying relief under section 89(1). There was another intimation under section 154 declining to revise the assessment. Petitioner approached CIT under section 264 and the said relief was declined. Thereafter, CIT found that even though legal position was settled in favour of petitioner, he will not be able to give the relief since a rectification application filed subsequent to the decision of High Court cannot be maintained. Department raised a demand on the petitioner regarding the arrears of tax to be paid. Held: Revenue authority reiterated the contention that order cannot be found fault since the Officer has acted only in accordance with law when he rejected rectification application, for reason that it was filed after the decision of High Court in favour of the assessee. At the same time, it was conceded that intimations under sections 143 and 154 were appealable under section 246(A) and appropriate remedy for the petitioner was to move an appeal. Petition was hence disposed of permitting the petitioner to file an appeal against the intimation under section 143(1) and intimation under section 154 within a period of three weeks.

REFERRED :

FAVOUR : Directions issued.

A.Y. :

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