Deepak Kumar Bhandari, Hisar V. ITO, Hisar

ITA 6257/DEL/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6613 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 27-02-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 05-12-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BEDOBINA CHAUDHURI
• Assessee Lawyers: V RAJA KUMAR S
• Keywords: Benefit of exemption; Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-I : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.6257/DEL/2016 ASSESSMENT YEAR : 2010-11 DEEPAK KUMAR BHANDARI, H.NO.52-N, MODEL TOWN, HISAR. PAN: AALPB5648L VS. ITO, WARD-1, HISAR. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI K. SAMPATH & SHRI V. RAJAKUMAR, ADVOCATES DEPARTMENT BY : MS BEDOBINA CHAUDHURI, SR. DR DATE OF HEARING : 27.02.2017 DATE OF PRONOUNCEMENT : 28.02.2017 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER PASSED BY THE CIT(A) ON 23.12.2015 IN RELATION TO T HE ASSESSMENT YEAR 2010-11. 2. THIS APPEAL IS TIME BARRED BY 269 DAYS. THE A SSESSEE HAS FILED A PETITION FOR CONDONATION OF DELAY GIVING THE REASON S, WITH WHICH I AM ITA NO.6257/DEL/2016 2 SATISFIED. THE DELAY IS CONDONED AND THE APPEAL IS ADMITTED FOR DISPOSAL ON MERITS. 3. THE ONLY ISSUE PRESSED BY THE LD. AR IN THIS APP EAL IS AGAINST THE DENIAL OF EXEMPTION IN RESPECT OF THE AMOUNT RECEIV ED BY THE ASSESSEE TOWARDS ARREARS OF GRATUITY AT RS.6,50,000/-. 4. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE WAS AN EMPLOYEE OF CHAUDHARY CHARAN SINGH HARYANA AGRICULT URAL UNIVERSITY, HISAR (HEREINAFTER CALLED CCS HAU) AND RETIRED FROM SERVICE BEFORE 24.05.2010. RETURN FOR THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR UNDER CONSIDERATION DECLARING TOTAL INCOME OF RS.5, 13,050/- WAS FILED, WHICH WAS PROCESSED U/S 143(1) OF THE ACT. THE AO I NITIATED RE- ASSESSMENT PROCEEDINGS ON THE PREMISE THAT THE ASSE SSEE HAD WRONGLY CLAIMED EXEMPTION U/S 10(10) IN RESPECT OF THE ARRE ARS OF GRATUITY. HE OBSERVED THAT GRATUITY WAS EXEMPT UP TO THE LIMIT O F RS.3,50,000/-, WHICH LIMIT STOOD EXHAUSTED IN THE EARLIER YEAR AT THE TIME OF ITS ORIGINAL RECEIPT. HE FURTHER NOTICED THAT EXEMPTION LIMIT W AS ENHANCED TO RS.10 LAC FOR THE PERSONS RETIRING FROM SERVICE ON OR AFT ER 24.5.2010. SINCE THE ITA NO.6257/DEL/2016 3 ASSESSEE RETIRED BEFORE THIS CUT-OFF DATE, THE AO O PINED THAT THE EXTENDED BENEFIT OF EXEMPTION WAS NOT AVAILABLE TO THE ASSES SEE. SINCE THE ASSESSEE WAS AN EMPLOYEE OF CCS HAU, THE AO HELD TH AT SUCH EMPLOYEES COULD NOT BE TERMED AS GOVERNMENT EMPLOYE ES AND, HENCE, THE BENEFIT U/S 10(10)(I) WAS NOT AVAILABLE TO THE ASSESSEE. RESULTANTLY, HE MADE ADDITION TOWARDS THE AMOUNT OF ARREARS OF G RATUITY RECEIVED AT RS.3,50,000/-. THE LD. CIT(A) ECHOED THE VIEW TAKEN BY THE AO. 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED THAT THE DELHI TRIBUNAL IN SHRI RAM KANWAR RANA VS. ITO, WARD-3, HISAR IN ITA NO.1307/D EL/2016 HAS ALLOWED EXEMPTION, INTER ALIA, IN RESPECT OF THE ARREARS OF GRATUITY AND DISMISSED THE GROUNDS ABOUT THE INITIATION OF RE-AS SESSMENT. SIMILAR VIEW HAS BEEN TAKEN IN SEVERAL DECISIONS INCLUDING RAGHUBIR SINGH PANGHAL VS. ITO IN ITA NO.1308/DEL/2016. FOLLOWING THE SAME CONSISTENT VIEW, I EXTEND THE BENEFIT OF EXEMPTION TO THE INSTANT ASSESSEE ALSO IN RESPECT OF ARREARS OF GRATUITY U/S 10(10)(I ). ITA NO.6257/DEL/2016 4 6. OTHER GROUNDS INCLUDING THE INITIATION OF RE ASSESSMENT PROCEEDINGS WERE NOT PRESSED BY THE LD. AR. THE SAME, THEREFORE , STAND DISMISSED AS NOT PRESSED. 7. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 28.02.201 7. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED, 28 TH FEBRUARY, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.