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2019 (12) TMI 813 - AT - Income TaxDisallowance u/s 10(10A)(ii) - assessee had revised his return of income and thereby offered less income than that was shown in the original return - nature of compensation received by the assessee from his employer - HELD THAT:- Employer introduced new policy for payment of pension / commuted pension to the employees. As per the said policy, the employer of the assessee had drawn annuity policy for its employees from Life Insurance Corporation of India. Out of the total fund value payable to the assessee, an amount was paid to the assessee on account of Commuted Pension and the balance funds was to be utilized for paying monthly pension after getting relieved from service. Though, the assessee was not immediately retired from the service and continued with the employment with his employer, yet, the basic intent and purpose of the aforesaid payment to the assessee was that of payment towards commuted pension to the employees. Though, generally the retrial benefits are paid on retirement from service, however, under certain circumstances, employment may be continued subject to payment of retrial benefits. The aforesaid payment to the assessee was nothing but the payment of retiral benefits towards Commuted Pension. We, therefore, are of the view that the lower authorities were not justified in disallowing the claim of the assessee u/s 10(10A)(ii). The action of the lower authorities on this account is set aside and the Assessing Officer is directed to allow the claim of the assessee made u/s 10(10A)(ii) of the Act.
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