SHYAM KISHOR PRASAD vs CENTRAL BOARD OF DIRECT TAXES on 8 October 2026

ORAL ORDER

(As per Hon’ble Mr. Manish Garg, Judicial Member)

By this Original Application, the applicant is seeking the following relief:

“…to declare the action of the respondents in not stepping up of the pay of the applicants to that of their junior as per the rules on the subject matter and not extending the benefit of the judgment of the Hon'ble CAT Bangalore in OA No.50/2017 which was upheld by the Hon'ble High Court of Karnataka in WP No.49498/2019 as illegal, arbitrary and violative of rules on the subject matter and consequently declare that the applicants are entitled for stepping up of pay on par with their juniors, and be pleased to pass such other order or orders as this Hon'ble Tribunal may deem fit and proper in the circumstances of the case.”

2. Learned counsel for the applicant has placed a comparative chart illustrating the pay of the 1st applicant vis-à-vis his junior (batchmate), drawing our attention to the detailed comparison. Which is as under:

Comparative Illustration of Pay of 1st Applicant with Junior (Batchmate) Applicant No.1: SHYAM KISHOR PRASAD S. No. Date Basic & Grade Pay (Rs.) Details

07.03.2008 BP: 7510, GP: 2400 Pay fixed on joining in the Cadre of Tax Assistant

01.07.2009 BP: 7810, GP: 2400 Annual Increment of Rs. 300/-

01.01.2010 BP: 8440, GP: 2400 Two Advance Increment on passing ITI's Exam w.e.f. 01.01.2010 of Rs. 630/-. Rs. 7,810/- + (310 + 320) = Rs. 8,440/-

01.07.2010 BP: 8770, GP: 2400 Annual Increment of Rs. 330/-

01.07.2011 BP: 9110, GP: 2400 Annual Increment of Rs. 340/-

17.10.2011 BP: 9460, GP: 4200 Promoted as Sr. Tax Assistant on 14.10.2011. One Promotional Increment of Rs. 350/-

01.07.2012 BP: 9870, GP: 4200 Annual Increment of Rs. 410/-

Junior (Batchmate): Mukesh Kumar Singh Date Basic & Grade Pay (Rs.) Details 14.02.2008 BP: 7510, Pay fixed on joining in the Cadre of Tax

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GP: 2400 Assistant 01.07.2009 BP: 7810, GP: 2400 Annual Increment of Rs. 300/- 01.07.2010 BP: 8120, GP: 2400 Annual Increment of Rs. 310/- 01.07.2011 BP: 8440, GP: 2400 Annual Increment of Rs. 320/- 17.10.2011 BP: 9300, GP: 4200 Promoted as Sr. Tax Assistant on 14.10.2011. One promotional increment fixing basic pay at Rs. 9,300/- as minimum basic pay of Sr. T.A., allowing increment of Rs. 860/- 01.07.2012 BP: 9710, GP: 4200 Annual Increment of Rs. 410/-

3. Based on the aforesaid illustration, reflects the same position in respect of each of the individual applicants.

4. Learned counsel for the applicant has placed reliance upon the following judgments/orders in support of the applicant’s case, which have been highlighted as under:

i. Orders dated 22.03.2019 in OA No.50/2017 of Hon’ble Central Administrative Tribunal, Bangalore Bench

ii. Judgment dated 23.02.2021 in WP No.49498/2019 of Hon’ble High Court of Karnataka at Bangalore

iii. Orders dated 22.12.2022 in OA No.1139/2022 of Hon’ble Central Administrative Tribunal, Principal Bench, New Delhi

iv. Judgment dated 15.01.2024 in WP No. (C) No.12653/2023 & CM Appl. 49888/2023 (Stay) of Hon’ble High Court of Delhi at New Delhi v. Orders dated 30.09.2024 in OA No.583/2023 of Hon’ble Central Administrative Tribunal, Jaipur Bench, Jaipur

vi. Judgment dated 08.01.2026 in D.B. Civil Writ Petition No.15452/2025 of Hon’ble High Court of Judicature for Rajasthan, Bench at Jaipur.

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vii. Orders dated 19.05.2026 in SLP (Civil) Diary No(s). 23093/2026 of Hon’ble Supreme Court of India.

5. Learned counsel for the applicant has further highlighted that, in an identical situation, the Hon’ble Central Administrative Tribunal, Jaipur Bench, in Income Tax Gazetted Officers Association, Rajasthan Unit & Anr. v. Union of India & Anr., O.A. No.583/2023 with M.A. No.176/2024, decided on 30.09.2024, was pleased to pass the following order: “10. Therefore, the applicants are held entitled to step up their pay at par with that of their respective junior. Since the present Original Applicant has been filed by the Association, we want to clarify that while it is the principle that the senior who earned advance increment on passing of the departmental examination prior to his junior and his junior earning advance increment on passing of the same departmental examination later in time; results in the junior drawing more salary than the senior on this account then the senior is entitled to step up of his pay and draw salary at par with that of his junior, is being allowed, the facts and entitlement of individuals, who would submit their applications to the respondents, shall be subject to the verification by the respondents.

11. 11. Accordingly, the respondents are directed to remove the anomaly and step up the salary of the applicants at par with their junior(s), within a period of four months from the date of receipt of a certified copy of this order.

It has been brought to our notice that the issue of pay parity of seniors with that of their juniors, earned by juniors in their individual capacity, is under the consideration of the Hon'ble Supreme Court. However, our directions to the respondents in this case are subject to any directions / orders of the

Hon'ble Apex Court on this controversy.

12. With these observations and directions, the present Original Application is disposed off. No order as to costs.

13. In view of the order passed in the O.A., all the pending Misc. Application(s) are disposed off.”

6. The aforesaid order of the Tribunal was challenged by the respondents before the Hon’ble High Court of Judicature for Rajasthan, Bench at Jaipur, in D.B. Civil Writ Petition No.15452/2025. The writ petition was dismissed vide judgment dated 08.01.2026, wherein the Hon’ble High Court, observed as under “4. Learned counsel for the respondents submits that the issue involved in this writ petition has also been considered by the Delhi High Court in the case of Union of India and Ors. Vs. Akhilesh Kumar Rastogi, wherein the Court has dismissed the writ petition filed on behalf of Union of India and directed them for granting the benefit of stepping up of pay.

5. Heard learned counsel for the parties and perused the record.

6. Since, the issue has already been considered by the High Court of Karnataka at Bengaluru and Delhi as referred above, which has not been further challenged before the Hon'ble Apex Court as informed by learned counsel for the parties.

7. We are agreeing with the view taken by the Tribunal and no case is made out for interference.

8. The writ petition is dismissed, accordingly”.

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7. The aforesaid judgment of the Hon’ble High Court was challenged by the respondents before the Hon’ble Supreme Court in SLP (C) Diary No.23093/2026; however, the said SLP was dismissed vide order dated 19.05.2026.

8. The learned counsel for applicant averred that the applicants are approaching this Tribunal for redressal of their grievance for stepping up their pay on par with their juniors. The issue has already been favorably considered by the Hon'ble Central Administrative Tribunal, Bangalore Bench in OA No.50/2017 vide orders dated 22.03.2019. The respondents therein i.e., Union of India rep by Department of Revenue, Ministry of Finance preferred a Writ Petition against the same in WP No.49498/2019 which was dismissed by the Hon'ble High Court of Karnataka at Bangalore on 23.02.2021 upholding the orders of the Hon'ble Tribunal. The orders are already implemented by the respondents to the extent of the applicants in the OA. The applicants herein also submitted representations dated March 2022 and Jan 2023 for stepping up of their pay on par with their juniors. But the respondents are not considering the same. Hence this OA seeking the extension of the benefit of the orders dated 22.03.2019 of the Bangalore Bench as confirmed by the Hon'ble High Court of Karnataka vide orders dated 23.02.2021 and is implemented by the respondents vide orders dated 28.11.2021 in respects of the applicants therein.

9. Opposing the grant of relief, learned counsel for the respondents has placed reliance upon the averments contained in the counter affidavit, wherein it has been stated as under:

“the Board vide letter in F.No.A.26017/04/2016-Ad.IX, dated 09.08.2021 has communicated to all Pr. CCITs as under:

Sub: Anomaly of pay arisen due to grant of advance increments on passing Departmental Examination - regarding.

Sir/Madam,

The matter relating to pay anomaly arisen due to grant of advance increments on passing of Departmental Examination in the Income Tax

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Department has been consideration for quite some time. The following two types of cases where pay anomaly had arisen were taken up with the D/o Expenditure as well as DoP&T:

a. The anomaly has arisen due to grant of advance increments to seniors in the pre-revised pay scale whereas juniors in the revised pay scale/level on implementation of the recommendations of 6th and 7th CPC.

b. The second case of anomaly has arisen due to grant of advance increments in their lower grade to the seniors when they had passed departmental examination, whereas juniors have been granted advance increments in the higher grade as they passed exam later.

2. DoP&T vide their letter dated 01/07/2021 has rejected the proposal with the remarks that- The matter has been considered in the light of the para 2 of consolidated on stepping up of pay issued by this Department vide OM No.4/3/2017-Estt. (Pay-I) dated 26.10.2018, which inter-alia provides the condition for stepping up that the pay anomaly is direct result of the application of the provisions of Fundamental Rule 22(1)(a)(1) read with Rule 13 of CCS(RP) Rules, 2016. The instant case of pay anomaly, drawal of higher pay by junior(s) is attributable to grant of advance increments after passing of departmental examination under different conditions. As such the same does not constitute pay anomaly for stepping up of pay of senior(s). In view of the same, the proposal of Departmental of Revenue is not agreed to.

3. All concerned may kindly be note the above decision of DoP&T.

13. In view of the above, the Applicants claim of pay anomaly does not constitute for stepping up of their pay as drawal of higher pay by junior(s) is attributable to solely availing of advance increments after passing of departmental examination under different conditions. Further in this connection it is submitted that the Board has issued the above circular/letter after the decision of Hon'ble High Court of Karnataka. In the said circular the Board has communicated the opinion of DoPT on the subject matter. In view of the same, it is clear that order of Hon'be High Court of Karnataka and Hon'ble CAT Bangalore will not applicable to the Applicants.”

10. We also note that the reliance placed by the respondents on the office communication dated 09.08.2021 cannot come to their aid, as the said communication has already been set aside by the Hon’ble Principal Bench in O.A. No.1139/2022, which decision has also been upheld by the Hon’ble High Court of Delhi and, as stated, has been implemented.

11. In view of the foregoing, we direct the respondents to pass appropriate orders in terms of the decisions rendered in the aforesaid cases, as referred to hereinabove, and already implemented in O.A. No.1139/2022, within a period of three months from the date of receipt of a certified copy of this order.

12. Accordingly, the O.A. is disposed of. All pending miscellaneous applications, if any, are disposed of. No order as to costs.

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(VARUN SINDHU KUL KAUMUDI) (MANISH GARG) ADMINISTRATIVE MEMBER JUDICIAL MEMBER

/pb/

O.A. is disposed of on

: 08.10.2026 Order dictated on

: 08.10.2026

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