TMI Blog1978 (8) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that the deduction claimed by the assessee was not expenditure incidental to the employment of the assessee and as such the deduction was not admissible. When the matter came before the AAC, she allowed the deduction on the basis that standard deduction under s. 16 was available to salaried employees after the amendment of the Act w.e.f. 1st April, 1975 even if there was no expenditure incurred by the employee as an expenditure incidental to his employment. It is this order of the AAC that the Revenue thought is erroneous in law. 3. The learned Departmental Representative submitted that pension was not actually salary but had to be taxed under the head 'salary'. Moreover, the pensioner is not in active employment and as such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry and periodical increments therein, terms as to leave, as to gratuity, as to pension and as to the age of superannuation. These are all matters relating to employment and they are, and must be, deemed to be, included in the expression matters relating to the employment in Art. 16 of the Constitution. It was submitted that Bombay Bench 'E' of the Tribunal in the case of Shri S.A. Narielwala (2) has held that standard deduction provided under s. 16 of the IT Act was available to a pensioner because it was not necessary that an assessee whose income was chargeable under the head 'salary' should per force incur any expenditure as is incidental to employment for obtaining the benefit of deduction under s. 16(i). The learned Counsel for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refrom. This is clear from the detailed deductions permitted under the statute from an item of income falling under a particular head of income mentioned. Thus, for example, salaries are dealt with under ss. 15 to 17 and s. 16 particularly provides the deductions from salary. Similarly, 'interest on securities' is dealt with under ss. 18 and 21and ss. 19 and 20, inter alia. Provide the deductions from such income. Similarly, there is a provision relating to income from house property (ss. 22 to 27), profits and gains of business or profession (ss.28 to 44D), capital gains (ss. 45 to 55) and income from other sources (ss. 56 to 59). It is, thus, abundantly clear that once the ITO classifies an item of income falling under one of the particul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling with the assessment for the year 1976-77 and, therefore, it is clearly attracted in this case. The language of the sections relevant for the computation of income under the head 'salaries' leaves no doubt in our minds that once an income is brought to charge under the head 'salaries' all the deductions that follow and that are provided under the statute are admissible. The case of the assessee is strong because the statute has done away with the necessity of producing any evidence whether there was any actual expenditure or not. We do not see how a pensioner can be put to disadvantage by bringing into the statute words so as to restrict the meaning of this deduction as available only to salary derived from personal employment. We do no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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