Continuous capital gains from ancestral property cannot be excluded when assessing eligibility for scholarships aimed at financially needy students, reflecting a strong financial background.

ORDER :

1. This writ petition has been filed by the petitioner with the following prayer:-

“It is, therefore, most respectfully and humbly prayed that by an appropriate writ, order or direction:

(I) the present writ petition filed by the petitioner may kindly be allowed;

(II) the impugned order dated 28.02.2025 (Annex.13) may kindly be quashed and set-aside.

(III) the list dated 27.07.2023 (Annex.7) may kindly be quashed and set-aside qua the petitioner;

(IV) the Gross Family income of the petitioner be considered between 0-8 lacs;

(V) the respondents may be directed to grant the benefit of the Scholarship to the petitioner while treating her to be in the E-1 Category.

(VI) Any other order or direction, which this Hon’ble Court deems fit and proper in the facts and circumstances of the present case may kindly be passed in favour of the humble petitioner.”

2. The facts, in nutshell, as narrated in the present writ petition, are that the petitioner applied for the purpose of grant of Scholarship in pursuance of the Rajiv Gandhi Scholarship for Academic Excellence Scheme , 2021. The petitioner, along with her application, submitted Income Tax Return (‘ITR’) of her father. The application submitted by the petitioner was required to be considered in the category E-1, which has been classified as the group, wherein the student and the family of the student is having the gross income below Rs.8 lacs. The ITR of the relevant year of the petitioner’s father indicated an additional income from capital gain and therefore, the candidature of the petitioner was not found to be falling in category E-1. The petitioner on knowing the said fact submitted a representation on 24.07.2023, however, the grievance of the petitioner was not redressed. In these circumstances, a writ petition bearing SBCWP No.11526/2023 came to be filed, which was decided by a Co-ordinate Bench of this Court vide order dated 29.08.2023, directing the respondents to consider the grant of benefit of Scholarship to the petitioner in the category E-1 after passing a speaking order while taking into consideration the ITR of the assessment year 2023-24/financial year 2022-23 so also keeping into consideration Condition No.8(v) of Guidelines of Scholarship Scheme dated 08.06.2023 (Annex.2). It was further directed that in case, after considering such representation, the petitioner’s father is found to be having income less than Rs.8 lacs as an annual income, then while treating her under E-1 category, the benefit of scholarship should be granted.

2.1 The case of petitioner was considered in light of the order dated 29.08.2023, however, the same came to be rejected by the impugned order dated 28.02.2025. Being aggrieved by the said order, the present writ petition has been filed.

3. Learned counsel for the petitioner submitted that as per Condition No.8(v), if in a particular year, the income through capital gain is shown on account of retiral benefits/gift/sale receipt of immovable assets, then the said capital gain is to be ignored for the purpose of assessing the annual income in order to decide eligibility for availing the scholarship.

3.1 As per learned counsel for the petitioner, case of the petitioner is required to be considered in the category E-1 as the regular income of her father is below Rs.8 lacs. It is argued that the ITR is indicating the income above Rs.8 lacs and the reason behind it, is the capital gain. While referring to the ITR so also the revenue record, it is submitted that as a matter of fact, the petitioner’s father received some ancestra