TMI Blog1994 (10) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The assessee filed the return of income on29-4-1988declaring the net income of Rs. 28,488. In response to notice under section 143(2) the assessee filed written submissions before the Assessing Officer in support of claims made by him with reference to special pay and certain compulsory deductions made from salary on account of contributions towards CGHS, CGEIS and PF. The Assessing Officer without much discussion on the aforesaid exemption claimed by the assessee, disallowed the amount of Rs. 106 towards contribution to CGHS, Rs. 960 towards contribution to CGEIS, Rs. 1500 as personal pay for undergoing Vasectomy operation and Rs. 3,421 as compulsory deduction @ 6 per cent of salary towards PF. 3. On appeal, the DCIT(A) considered the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption of Rs. 1,500 as personal pay for undergoing Vasectomy operation under section 10(17A) or section 10(17B), the DCIT(A) observed that the said provisions pertained to the awards/reward which have been approved by the Central Government for which notifications are issued by the CBDT from time to time after seeking approval of the Government. He further observed that there is no such award for the Vasectomy operation for which notification has been issued by the Board and hence no exemption would be given to the appellant for payment/increment received for Vasectomy operation. Aggrieved, the assessee has filed the present appeal. 4. The assessee, Shri S.N. Bhargava mentioned at the outset that he is not pressing his claims with refer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to mean " a recompense or premium offered or bestowed by Government or an individual in return for special or extraordinary services to be performed, or for special attainments or achievements, or for some act resulting to the benefit of the public, as a reward for useful inventions, for the discovery and apprehension of criminals, that which is offered or given for some service or attainment, sum of money paid or taken for doing or forbearing to do, some act ". He further submitted that the learned DCIT(A) has misconstrued the said provisions of section 10 and has wrongly observed that a notification is necessary before an exemption can be allowed under the said provisions. He submitted that the office memorandum in question has been issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the assessee is concerned, the real question is as to whether the same can be treated as an award/reward under the provisions of section 10, as relied upon by the assessee. He submitted that the object of the aforesaid office memorandum issued by the Ministry of Health is to promote small family norms amongst the employees of the Central Government and the special increment has been granted as personal pay to the assessee and in terms of the said office memorandum is to be absorbed in future increase in pay of the assessee in the same post or on promotion to higher post. In this connection he also relied on the decision of the Tribunal, Allahabad Bench in the case of WG. CDR. K.P.K. Ghose v. ITO [1983] 5 ITD 413 wherein it has been hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be treated as an award/reward so as to be exempt under the aforesaid provisions of section 10. With reference to compulsory deduction of 6% from the salary towards PF, the learned representative relied on the decision of High Court of Justice (Kings division Bench) in Smyth v. Stretton 5 TC 36 and of Court of Appeal in Bellv. Gribbli 4 Tax Cases 522, which are directly on deductions relating to PF under the then existing schemes, whereunder in certain cases the contributions made could also be forfeited. He submitted that the present scheme of PF deductions is much more liberal and the amount contributed is ultimately refundable together with interest. Thus there is no basis for claiming that the said deductions will erode the real income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aforesaid grounds of appeal. With reference to the claim of the assessee that the special increment granted to him by way of personal pay should be treated as exempt under the provisions of section 10(17A)/(17B), we feel that the submissions made by the learned departmental representative have merit and the said personal pay cannot be treated as an award/reward under the aforesaid provisions of section 10 as neither it is in the nature of an award for literary, scientific or artistic work or attainment or for services for elevating the distress of poor, the weak and the ailing or for proficiency in sports and games instituted by the Central Government and nor it is in the nature of a reward for certain purposes which have to be approved by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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