TMI Blog2017 (2) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... )(i) and 10(10AA)(i) and the view taken in respect of arrears of gratuity u/s 10(10) should be followed for arrears of leave encashment u/s 10(10AA). The ld. DR supported this proposition. As both the sides are consensus ad idem on the position that the view taken in the context of section 10(10) as applicable to leave gratuity be followed here in the context of section 10(10AA) in the context of leave encashment, desisting from independently examining the later provision. In view of the fact that held the assessee to be entitled to exemption u/s 10(10)(i) in respect of arrears of gratuity, following the same, extend the benefit of exemption u/s 10(10AA)(i) in respect of arrears of leave encashment. - Decided in favour of assessee - I.T.A .No.-1220/Del/2016 - - - Dated:- 17-11-2016 - SMT DIVA SINGH, JUDICIAL MEMBER For The Assessee : Sh.K.Sampath, Adv. For The Revenue : Sh.F.R.Meena, Sr.DR ORDER The present appeal has been filed by the assessee assailing the correctness of the order dated 23.12.2015 of the CIT(A), Hisar pertaining to 2010-11 AY on various grounds. However, the Ld.AR at the time of hearing submitted that the jurisdictional issues are not being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order to canvass a contrary view. 3. I have heard the rival submissions and perused the material available on record. A perusal of the record shows that a return declaring income of ₹ 3,20,860/- was filed by the assessee. The said return was processed under section 143(1). The assessee admittedly was an employee of Chaudhary Charan Singh, Haryana Agricultural University, Hisar and retired from service before 24.05.2010 and received salary i.e. pension and other pensionary benefits during the year under consideration. The assessee in the computation of total income annexed with the return of income furnished details of receipt of arrears of Gratuity amounting to ₹ 10,00,000/- and arrears of leave encashment amounted to ₹ 2,01,170/- and claimed the same as exempt u/s 10(10) of the Income Tax Act, 1961. The AO by an order u/s 147/143(3) after show causing the assessee and considering the explanation completed the assessment at an income of ₹ 11,72,030/- holding that CCS HAU cannot be termed as Govt. employee as neither they are under the control of Haryana Govt. nor their pay is debited to the consolidated funds of the state. Application of CSR Vol.II does not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivil services of a State or holders of civil posts under a State or to the employees of a local authority or any payment of retiring gratuity received under the Pension Code or Regulations applicable to the members of the defence services ; (ii) .. (iii) any other gratuity received by an employee on his retirement or on his becoming incapacitated prior to such retirement or on termination of his employment, or any gratuity received by his widow, children or dependants on his death, to the extent it does not, in either case, exceed one-half month's salary for each year of completed service, calculated on the basis of the average salary for the ten months immediately preceding the month in which any such event occurs, subject to such limit as the Central Government may, by notification in the Official Gazette, specify in this behalf having regard to the limit applicable in this behalf to the employees of that Government : .. Provided further that where any such gratuity or gratuities was or were received in any one or more earlier previous years also and the whole or any part of the amount of such gratuity or gratuities was not included in the total i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under Civil Services Rule, it goes to show that the assessee was holding a civil post at the time of his retirement. No other contrary material has been placed on record by the ld. DR to show that the assessee was holding a post other than civil post. 7. The second requirement is that such civil post must be under a State. Page 20 of the paper book is a copy of Haryana and Punjab Agricultural University Act, 1970, which was passed by the Parliament and received the assent of the President on 2nd April, 1970. Under this Act of Parliament, two independent agricultural universities in place of the hitherto Punjab Agricultural University, were established. Section 5 of this Act sets out the name of CCSU as the agricultural university to function within the territories of State of Haryana. This proves that the CCSU was established by an Act of Parliament. Page 29 of the paper book is a document which shows that the assessee is a State University covered under University Grants Commission (UGC). It is undisputed that the entire funding of the CCSU is done by the State Government. Page 25 is a copy of Notification issued by the Haryana Government increasing the maximum limit of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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