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2023 (5) TMI 741 - HC - Income TaxRefund of the income tax for the past years on exempted income of disability pension (service element and disability element) - petitioner is a disabled officer of the Indian Army who was commissioned and retired with service pension - HELD THAT:- As no explanation has been given as to why as per the Circular dated 02.07.2001 as referred to in the case of Colonel Madan Gopal Singh Nagi [2019 (3) TMI 502 - MADHYA PRADESH HIGH COURT] once the disability pension was exempted from income tax then why this benefit has not been given to the petitioner. More so, the Board's Circular No. 13/2019 dated 24.06.2019 has been challenged by the disabled soldiers which has been stayed by the Hon'ble Supreme Court. Since the parties were directed to maintain status quo, which means that no recovery of income tax could be effected from the Army officer. Another aspect which required to be considered is that the Delhi High Court in Mahavir Singh Narwal vs. Union of India and another [2004 (5) TMI 622 - DELHI HIGH COURT] has already examined Rule 173 of the Disability Pension which has not been amended till date. This writ petition is allowed and the amount of income tax paid by the petitioner for the relevant years be refunded to him alongwith interest @ 9% p.a. within a period of one month from the date of receipt of certified copy of this order alongwith costs of Rs.1 lac. Thereafter, compliance report of the order be sent to this Court by the concerned authority. If the payment is not made within the stipulated period then interest @ 18% p.a. from the date of entitlement till the amount actually paid to the petitioner shall be given as per the judgment passed in Madan Gopal Singh Nagi vs. Commissioner of Income Tax II [2019 (3) TMI 502 - MADHYA PRADESH HIGH COURT]
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