Case Law Details
Purnendu Shekhar Sinha son of Late Ram Swaroop Singh Vs Union Of India through the Secretary (Patna High Court)
Patna High Court held that differentiation made by the State between the employees of the Central and State Governments on the one hand and the other employees on the other in Section 10(10AA) of the Income Tax Act is neither discriminating nor violative of Article 14 of the Constitution of India.
Facts- The petitioner joined the State Bank of India in the year 1981 and after putting in more than 36 years of service retired on 31.08.2017.
According to the writ petition filed prior to his retirement, he made a case that once retired, he was entitled to Rs. 6,70,000/- but after deduction of income tax he will be getting only a sum of Rs. 4,70,000/- approximately as rest of the amount will be liable to tax. However, had he been in the State or Central Government Services, no deduction on account of income tax would have been made from the leave salary payable to the petitioner at the time of his retirement and he would have been entitled to receive the entire sum.
Thus, according to the petitioner, it is only because of the operation of Section 10(10AA) of the Income Tax Act, 1961 which discriminates between the similarly placed group of employees that he would lose so much money.
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