LIEUTENANT COLONEL MATHEWS P. GEORGE (RETD) vs. THE CHIEF COMMISSIONER OF INCOME TAX

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WP(C)/7254/2021HC KeralaKLHC01019233202105 November 2024Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR,HONOURABLE MR.JUSTICE K. V. JAYAKUMAR4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the petitioner is not entitled to the income tax exemption benefit conferred by Circular Ext.P5. The reasoning was that the petitioner was invalided out of service due to abdominal ulcer, and the military authorities themselves had concluded that this disease was neither attributable to nor aggravated by military service. The court found no error in the impugned order (Ext.P12) rejecting the petitioner's claim. Therefore, the writ petition was dismissed. The ratio decidendi is that the exemption under the circular is strictly limited to cases where the bodily disability is attributable to or aggravated by military service, and a mere invaliding from service due to a condition not linked to service does not qualify for the exemption.

What were the facts?

The petitioner, Lieutenant Colonel Mathews P. George (Retd), filed a writ petition challenging an order (Ext.P12) that rejected his claim for exemption from income tax on his pension, including disability pension. The petitioner relied on Circular Ext.P5 dated 24.01.2014, which provides for income tax exemption to armed forces personnel invalided due to bodily disability attributable to or aggravated by service. The petitioner was invalided out of service due to abdominal ulcer. However, the military authorities determined that this condition was neither attributable to nor aggravated by his military service. The respondent authorities, including the Chief Commissioner of Income Tax and the Income Tax Officer, upheld this decision.

What were the issues?

1. Whether the petitioner is entitled to income tax exemption on his pension, including disability pension, under Circular Ext.P5 dated 24.01.2014, considering the condition for which he was invalided out of service. Assessee's Contention: The petitioner argued that he is entitled to exemption from income tax on his pension, including disability pension, based on Circular Ext.P5. He relied on the circular to support his claim for exemption. Revenue's Contention: The revenue contended that the petitioner is not entitled to the exemption because the abdominal ulcer, for which he was invalided out of service, was not found by the military authorities to be attributable to or aggravated by military service, which is a prerequisite for exemption under the circular.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 26TH DAY OF MARCH 2024 / 6TH CHAITHRA, 1946 WP(C) NO. 7254 OF 2021 PETITIONER/S: LIEUTENANT COLONEL MATHEWS P. GEORGE (RETD) AGED 68 YEARS S/O. GEORGE MATHEN THAZHATHIL, NO.17, VRINDAVANAM, SUBASH CHANDRA BOSE ROAD, VYTTILA P.O, ERNAKULAM - 682019. BY ADVS. JOMY GEORGE SRI.R.PADMARAJ SRI.M.J.BENNY SRI.DEEPAK MOHAN SMT. CHITRA N. DAS SHRI.RISHAB S. SRI.R.AJITH KUMAR [V.K.EDOM] SHRI.GEORGE J MOOLAMKUNNAM RESPONDENT/S: 1 THE CHIEF COMMISSIONER OF INCOME TAX CENTRAL REVENUE BUILDING, IS PRESS ROAD, KOCHI, KERALA - 682018. 2 INCOME TAX OFFICER NON-CROP WARD 1(3), CENTRAL REVENUE BUILDING, IS PRESS ROAD, KOCHI, KERALA - 682018. 3 PRINCIPAL CONTROLLER OF DEFENCE ACCOUNTS AND (PENSIONS), DRAUPADI GHAT, SADAR BAZAR, PRAYAGRAJ, ALLAHABAD, UTTAR PRADESH - 211014. BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT OTHER PRESENT: SRI. CHRISTOPHER ABRAHAM -SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 7254 OF 2021 2 JUDGMENT Dated this the 26th day of March, 2024 The present writ petition has been filed by the petitioner impugning Ext.P12 order on the representation of the petitioner. The petitioner claims for exemption from payment of income tax on pension which would include disability pension, has been rejected in view of the circular relied on by the petitioner himself in Ext.P5 dated 24.01.2014. 2.Paragraphs 4 and 5 of the said circular on reproduction which reads as under:- “The matter has been examined in the notification No.878-F dated 21.03.1922, provides income tax exemption to all members of Armed Forces who have been invalided for naval, military or air force service on account of bodily disability attributable to or aggravated by such service. Thus, income-tax exemption under above clause would be available to all armed forces personnel (irrespective of rank) who have been invalided for such service on account of bodily disability attributable to or aggravated by such service. Further, such tax exemption will be available only to armed forces personnel who have been invalided from service on account of bodily disability attributable to or aggravated by such service and not to personnel who have been retired on superannuation or otherwise.”

3.

Thus, the pension which would include disability pension is excluded from payment of the income tax of a person of the Armed Forces who have been invalided from Armed Forces on account of bodily disability attributable to WP(C) NO. 7254 OF 2021 3 or aggravated (emphasis supplied by such service) by army service.

4.

In the present case, the petitioner was invalided out of service because of abdominal Ulcer. The Military authority have themselves found that this disease was neither attributable to or aggravated by the military service. Therefore, I am of the considered view that the petitioner is not entitled for the benefit conferred by the Circular in Ext.P5 and therefore there is no error in the impugned order in Ext.P12 which requires an interference by this court in exercise of its jurisdictional power under Article 226 of the Constitution of India. In view thereof, the present writ petition which is having no merit in substance, is hereby dismissed. DINESH KUMAR SINGH JUDGE SJ

WP(C) NO. 7254 OF 2021 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 7254/2021 PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE PROCEEDINGS OF THE MEDICAL BOARD DATED 06.07.1996. EXHIBIT P2 TRUE COPY OF THE ORDER DATED 22.06.2020 ISSUED BY THE PRINCIPAL CONTROLLER OF DEFENCE ACCOUNTS(PENSIONS) ALLAHABAD. EXHIBIT P3 TRUE COPY OF THE INSTRUCTION, NO.136 DATED 14.01.1970 OF CENTRAL BOARD OF DIRECT TAXES, EXHIBIT P4 TRUE COPY OF THE INSTRUCTION, NO.2/2001 DATED 02.07.2001 OF CENTRAL BOARD OF DIRECT TAXES. EXHIBIT P5 TRUE COPY OF THE CIRCULAR NO.13/2019 DATED 24.06.2019 ISSUED BY THE DEPARTMENT OF REVENUE. EXHIBIT P6 TRUE COPY OF THE REPRESENTATION DATED 29.07.2019 SUBMITTED BY THE PETITIONER BEFORE THE CBDT, NEW DELHI WITH COPY TO RESPONDENTS 1 AND 2 EXHIBIT P7 TRUE COPY OF THE LETTER DATED 14.08.2019 SENT BY THE INCOME TAX OFFICER, NON CORPORATE WARD 1(3) TO THE INCOME TAX OFFICER,NON CORPORATE WARD 2(3) EXHIBIT P8 TRUE COPY OF THE LETTER DATED 29.11.2019 SENT BY THE PETITIONER TO THE INCOME TAX OFFICER, NON CORPORATE WARD 2(3), KOCHI. EXHIBIT P9 TRUE COPY OF THE LETTER DATED 20.02.2020 SENT BY THE PETITIONER TO THE 1ST RESPONDENT. EXHIBIT P10 TRUE COPY OF THE LETTER DATED 04.03.2020 SENT BY THE 2ND RESPONDENT TO THE PETITIONER. EXHIBIT P11 TRUE COPY OF THE LETTER DATED 07.03.2020 SENT BY THE PETITIONER TO THE 2ND RESPONDENT. EXHIBIT P12 TRUE COPY OF THE ORDER DATED 11.05.2020 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P13 TRUE COPY OF THE COMPLAINT DATED 14.05.2020 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P14 TRUE COPY OF THE COMPLAINT DATED 07.07.2020 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P15 TRUE COPY OF THE COMPLAINT DATED 14.09.2020 FILED BY THE PETITIONER BEFORE THE GRIEVANCE CELL OFFICER, INCOME TAX DEPARTMENT, KOCHI, KERALA. Exhibit P16 TRUE COPY OF THE CIRCULAR DATED 9/6/2015 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES

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