KANWAL PAL SINGH v. INCOME TAX OFFICER
[Citation -2008-LL-0430-1]
| Citation | 2008-LL-0430-1 |
|---|---|
| Appellant Name | KANWAL PAL SINGH |
| Respondent Name | INCOME TAX OFFICER |
| Court | ITAT |
| Relevant Act | Income-tax |
| Date of Order | 30/04/2008 |
| Assessment Year | 2001-02 |
| Judgment | View Judgment |
| Keyword Tags | profit in lieu of salary • voluntary retirement • excess amount • ex gratia |
| Bot Summary: | 2001-02, in the matter of disallowance of benefit claimed under s. 89(1) of the IT Act, 1961. During the year under consideration, the assessee took voluntary retirement from Punjab Sind Bank and received ex gratia payment on which exemption of Rs. 5,00,000 was claimed under s. 10(10C) of the Act. On the balance amount of Rs. 58,000, relief was claimed under s. 89(1) which was declined by the AO and the same was confirmed by the CIT(A). We have considered rival contentions; the amounts so received by the assessee on retirement was nothing but profit in lieu of salary covered under s. 17(1)(iv) eligible for claim of relief as provided under s. 89(1) of the Act. Hon ble Madras High Court in case of CIT vs. M. Raman 152 CTR 497: 245 ITR 856 has held that compensation paid to the employees at the time of retirement is nothing but profit in lieu of salary covered under s. 17(1)(iv) of the Act. The issue with regard to allowing of deduction under s. 89(1) on such retirement benefit, along with exemption under s. 10(10C) of the Act is no more in controversy. Respectfully following the same, the appeal is allowed in favour of the assessee. |