THIRD INCOME TAX OFFICER v. PITUMAL J.POHANI
[Citation -1987-LL-0414-4]
Citation | 1987-LL-0414-4 |
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Appellant Name | THIRD INCOME TAX OFFICER |
Respondent Name | PITUMAL J.POHANI |
Court | ITAT |
Relevant Act | Income-tax |
Date of Order | 14/04/1987 |
Assessment Year | 1981- 82 |
Judgment | View Judgment |
Keyword Tags | relationship of master and servant • income from salary • dearness allowance • bonus commission • agency work |
Bot Summary: | The assessee filed appeal and the AAC held that the agent appointed by LIC under the said regulations would come with in the ambit of the term employee in s. 10 and as such those provisions would apply to the amount received by the assessee as gratuity. On merits, the submission before us on behalf of the Department was that the assessee could not be considered to be employee of the LIC and as such the provisions of s.10 of the Act were not applicable The contention on behalf of the assessee on the other hand was that the nomenclature agent was not decisive of the question whether the assessee was employee or not. Representative of the assessee relied on the provision of the Regulation and contended that in substance the assessee was employee of LIC within the meaning of that work in s. 10(10) of the Act and as such exemption from inclusion as laid down in the said provision was available to the assessee. Clause on which reliance is placed is as follows; any other gratuity received by an employee on his retirement or on his becoming incapacitated prior to such retirement or on termination of his employment.......to the extent it does not in either case exceed one and half months salary for each of completed service calculated on the basis of the average salary for the three years immediately preceding the year in which gratuity is paid subject to a maximum of thirty thousand rupees or twenty months salary so calculated which is less. Of s. 10 contemplates that the employee in question who claims exemption was in receipt of salary from the employer which was in capable of being calculated on monthly basis This clause does not grant exemption upto thirty thousand rupees to all the employees who receive gratuity of thirty thousand rupees but to only those employees whose one and half month s salary for each completed year of service calculated on the average o f salary of previous three years exceeds thirty thousand rupees. Various clause of the Regulations indicate that the assessee was not employee within the meaning of that term in s. 10 of the Act Under cl. As regards gratuity, it is specifically mentioned in para 2 of Schedule VI of the Regulations that no gratuity shall be admissible to an agent who is also an employee of the corporation for the period he remains such employee and his agency work such period shall not count for any purposes under the said clause even after the cessation of his service as an employee. |