Upgradation of Pay Scale of Income Tax Inspectors and Income Tax Officers: Kerala HC directs to extend benefit of Order to all Applicants [Read Order]

The Kerala High Court directed to extend the benefit of order to all applicants in the matter concerning the upgradation of pay scale of Income Tax Inspectors and Income Tax Officers.

The applicants before the Tribunal claimed that they are entitled for notional fixation of the upgraded pay scale of Rs.6,500-10,500/- applicable to Income Tax Inspectors with effect from 1.1.1996 and thereafter, for the upgraded pay scale of Rs.7,500-12,000 applicable to Income Tax Officers from 18.6.2001, the date of the promotion of the applicants as Income Tax Officers.

The contention was that in a similar post, upgradation was given with effect from 1.1.1996 and the Income Tax Department has given effect only from the date of order, i.e., 21.4.2004. This issue was addressed by the Central Government by constituting a Special Anomaly Committee and they found it genuine.

A Special Anomaly Committee was constituted pursuant to the direction of the Calcutta High Court. Thereafter, based on the recommendations of the Special Anomaly Committee, an order was passed by the Government of India, Central Board of Direct Taxes dated 22.9.2023, giving effect to the recommendations of the Special Anomaly Committee taking it as given effect from 1.1.1996. This has been a notional benefit with effect from 1.1.1996 and the actual benefit from 21.4.2004.

The Government Counsel submitted that individual case will have to be referred and the matter has to be referred to the Special Anomaly Committee for further consideration in the light of the Government of India's decision dated 22.9.2023.

The counsel for the petitioners submitted that the Bombay High Court relying on the same order of the Calcutta High Court and the consequential order passed by the Union Government ordered to give such benefits to all applicants and similarly situated applicants who approached the Tribunal.

 A Division Bench of Justice A. Muhamed Mustaque and Justice Shoba Annamma Eapen observed that “Having considered the facts and circumstances, we are of the view that since the issue has been concluded, the Union Government shall extend the benefit of its order dated 22.9.2023 to all applicants. However, nothing prevents the Union Government from constituting an Anomaly Committee to verify the individual cases if so warranted. The entire process in this regard shall be completed within a period of three months.”
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