IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.T.SANKARAN MONDAY, THE 23RD JUNE 2008 / 2ND ASHADHA 1930 WP(C).No. 18059 of 2008(Y) --------------------------------- PETITIONER: --------------- DR.G.BALACHANDRAN, SELECTION GRADE LECTURER IN COMMERCE, S.D.COLLEGE, ALAPPUZHA. BY ADV. SRI.J.OM PRAKASH RESPONDENTS: ------------------ 1. THE DIRECTOR OF COLEGIATE EDUCATION, TRIVANDRUM 2. THE DEPUTY DIRECTOR OF COLEGIATE EDUCATION, ERNAKULAM 3. THE DISTRICT TREASURY OFFICER, ALAPPUZHA 4. THE PRINCIPAL, S.D.COLEGE, ALAPPUZHA BY GOVT. PLEADER A.J. VARGHESE THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23/06/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.T.SANKARAN, J -------------------------------- W.P.(C)No. 18059 OF 2008 ------------------------------------------ Dated this the 23rd day of June, 2008 J U D G M E N T The petitioner is a Selection Grade Lecturer in Commerce in S.D. College, Alappuzha. It is stated that D.A. arrears, from January 2006 to November 2007 are due to the teachers as a result of the Ext. P1 government order dated 5.11.2007 increasing the D.A from time to time. As per Ext. P1, the D.A arrears for the period from 1.1.2006 to 30.11.2007 will be drawn and credited to Provident Fund account along with the salary bill for December 2007 to May 2008. It is stated that the Principal presented the bill for D.A arrears and submitted the same for countersignature of the 2nd respondent ,Deputy Director of Collegiate Education. It is stated that when the bill was prepared it was specifically shown therein the income tax to be deducted from arrears of D.A. Ext. P3 communication dated 6.6.2008 was issued by the Deputy Director of Collegiate Education to the Principal of the College stating that it is not permissible to deduct the income tax from the D.A arrears. It is also stated therein that the income tax has to be deducted from the salary of the teachers. Ext. P3 is under challenge in this W.P.(C)No. 18059/2008 2 Writ Petition. 2. In a similar case, in respect of D.A arrears for an earlier period, this court had issued some directions in Ext. P2 judgment dated 7.2.2005 in W.P.(C) 4232/2005. The directions issued therein are the following: “1. When bills are prepared in respect of the arrears payable consequent to Government Orders, the Principals of the Institutions should ensure that the income tax that might be payable in respect of the payments are to be separately shown and it should be ensured that the same be remitted in the Treasury so as to meet the requirement of payment of income tax in respect of the payment of the benefits. 2. In any case, the liability of the petitioners for payment of tax, should be adequately and completely met with and they are not to be exposed to any risk. 3. The Treasury Officer concerned should see to it that there is no difficulty for ensuring such compliance, and necessary guidance may be given if sought for. W.P.(C)No. 18059/2008 3 4. The balance amount is to be credited to the Provident Fund Account of the petitioners. The remittances as above would be liable to be appropriately taken notice of at the time of submission of return and assessment of the individual concerned.” 3. The grievance voiced by the petitioner is genuine. He does not dispute the liability to pay income tax on the amount of D.A. Arrears. The petitioner only wants that the income tax payable on D.A arrears should be taken from D.A arrears itself and only the balance should be deposited in the Provident Fund account. To my mind he is entitled to say so and the government is not entitled to deny the same. The learned Government Pleader submitted that under the cover of this claim, salary bills are being presented permitting persons like the petitioners to deduct the entire income tax liability from the D.A arrears and that such claim for deduction does not pertain to D.A arrears alone. In such cases, the appropriate authority may direct fresh salary bills be presented if the deduction sought does not pertain to D.A arrears alone. W.P.(C)No. 18059/2008 4 4. In view of the directions issued in Ext. P2 judgment and also in the light of the contentions put forwarded by the petitioner and the submissions made by the learned Government Pleader, I am of the view that Ext. P3 is liable to be quashed. I accordingly quash Ext. P3. The petitioner is entitled to get deduction of income tax on the D.A arrears payable to him. After deducting the income tax payable on the D.A arrears, the balance alone should go to the Provident Fund account in terms of Exhibit P1. In other words the entire D.A arrears should not be credited to the P.F account. The petitioner and similarly situated persons should not be burdened with the liability to pay income tax payable on the D.A arrears out of their salary, but it should be carved out from the D.A arrears. If bills are presented accordingly, the 2nd respondent shall countersign such bills expeditiously. The Writ Petition allowed with the above directions. K.T.SANKARAN, JUDGE vkm