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2020 (10) TMI 777 - HC - Income TaxGrant of relief u/s 89 - Relief when salary, etc., is paid in arrears or in advance - AO jurisdiction of the matter for the grant of relief - Retirement and pension benefits withheld - proceedings pending against the petitioner before the Railway Authority - petitioner submitted a request to not deduct income tax on the amount by treating it as income of the current year, to spread over/ distribute the payment over the period, under Section 89 of the I-T Act read with Rule 21A (2)(d) of the I-T Rules - Whether petitioner, being a senior citizen, was exempted from paying income tax in advance, under Section 207(2) ? - whether the SBI erred in not allowing the benefit of Section 89 while deducting TDS on a pension under Section 192 ? - whether this Court ought to direct the SBI or the I-T department to make a refund to the petitioner? - HELD THAT:- Section 89 is plain and clear. It provides that it is for the Assessing Officer of income tax to grant the relief under the Section and on application made before him. We further see that the Hon'ble Apex Court has accepted this position in multiple cases. In the case of Sundaram Motors (P.) Ltd. v. Ameerjan [1984 (8) TMI 3 - SUPREME COURT] awarded the petitioners with compensation in place of reinstatement. Holding that since the amount would be paid in lump sum, for payment of income tax, the benefit of spread over must be provided to the petitioners. Accordingly, the Court directed the employee to make a necessary application before the I-T Officer to claim relief under Section 89, and the officer to act immediately in disposing of the said application. On a reading of Section 192 (2A), we agree that the SBI should have computed the relief on the basis of the particulars and deducted income tax in accordance with Section 89. However, we see that the remedy of the undue deduction is provided under Section 89 of the I-T Act itself, where the assessee is required to apply to the Assessing Officer and avail relief under the Section. Accordingly, the petitioner is directed to make a required application to the Assessing Officer having jurisdiction of the matter for the grant of relief under Section 89 of the Act in accordance with the provisions of the statute. The SBI is directed to extend all assistance to the petitioner to enable him to avail such relief. We also hope and expect that the Assessing Officer of the income tax considers and dispose of the matter expeditiously and within a period of three months from the date of receipt of application.
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