Allowing the petition the Court held that the Tamil Nadu Agricultural University is a university that is constituted under a State Act. Section 7 of the Tamil Nadu Agricultural University Act, 1971 provides for an unfettered right of the State to inspect and conduct enquiry into the management of the university, its various activities including teaching, the work conducted by the university, conduct of examinations as well as person or persons who are connected with the administration or finances of the university, by the State. The power exercised by the State Government in the functioning and management of the university is unbridled. The Governor of Tamil Nadu is, in terms of section 9 of the Act, the Chancellor of the University. The funding of the university is entirely at the behest of the State Government. Hence the Tamil Nadu Agricultural University is a part of the State and employees of the Tamil Nadu Agricultural University are Government servants, entitled to the benefit of exemption under section 10(10AA)(i) of the Act. Accordingly, that the circular dated February 17, 2015 and consequent communications dated October 30, 2018, March 19, 2019 and November 14, 2016 issued to the petitioners, employees of the Tamil Nadu Agricultural University, by the University, were contrary to law and liable to be set aside.
Dr. P. Balasubramanian v. CCIT(TDS) (2022) 448 ITR 318 / 217 DTR 163 / 328 CTR 497 (Mad.)(HC) Dr. S. Chandra Shekaran v. CCIT (TDS)(2022) 448 ITR 318 / 217 DTR 163 / 328 CTR 497 (Mad.)(HC) Dr. K. Govind Rajan v. CCIT (TDS) (2022) 448 ITR 318 / 217 DTR 163 / 328 CTR 497 (Mad.)(HC)
S. 10(10AA) : Leave salary-Employee of the Central Government or State Government-Encashed earned leave by employees Government employee-Tamil Nadu Agricultural University-Funded by State Government and under its control-Retired Employees Of Tamil Nadu Agricultural University-Entitled to exemption. [S. 192(2A), Tamil Nadu Agricultural University Act, 1971, S. 7, 9]