TMI Blog2024 (1) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 10(10) of the Act on the disputed amount of gratuity received by the assessee during the year. - Shri Shamim Yahya, Accountant Member And Shri Challa Nagendra Prasad, Judicial Member For the Assessee : Shri V Rajkumar, Adv. For the Revenue : Shri Anuj Garg, Sr. DR ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : This appeal filed by the assessee is directed against the order of ld. CIT (Appeals) Hisar dated 23.12.2015 for the Assessment Year 2010-11. 2. Grounds of appeal taken by the assessee are as under :- On the facts and in the circumstances of the case and in law the Ld. CIT(A) erred in confirming following action of the Assessing Officer in: i) initiating proceedings u/s 147 of the Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d return of income declaring total income of Rs. 11,37,656/-. The learned Assessing Officer observed that assessee has claimed excess gratuity of Rs. 6,50,000/- under section 10(10) of the Income-tax Act and the Assessing Officer was of the view that assessee is not entitled for this claim because as an employee of Hisar Agriculture University, he cannot be considered as state Government employee or holder of civil post under the state. 4. Upon assessee s appeal, ld. CIT (A) concluded in para 5.2.11 as under: 5.2.11 Considering the above discussion, I hold that appellant is not a holder of civil post under a state government and eligible for exemption u/s, 10(10)(i) of Income Tax Act. He is not covered by Section 10(10)(ii) as he di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el/2016, based upon another order in ITA No. 1307/Del/2016 where in it was observed in para no. 4 of ITA No. 3713/Del/2016 as below : 4. I have heard the rival submissions and perused the relevant material on record. The controversy in this appeal can be viewed separately in respect of receipt of gratuity amount and leave encashment. In so far as the addition on account of gratuity received by the assessee amounting to Rs. 6,50,000/- is concerned, it is found that the case of the assessee is that this amount falls u/s 10(10)(i) of the Act. On the contrary, the Revenue has treated it as a case falling u/s 10(10)(iii). In order to appreciate the rival contentions in right perspective, it will be apposite to set out the relevant parts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther 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 income of the assessee of such previous year or years, the amount exempt from income-tax under this clause shall not exceed the limit so specified as reduced by the amount or, as the case may be, the aggregate amount not included in the total income of any such previous year or years. 5. A careful perusal of the above provision indicates that if a case falls under clause (i) of section 10(10), the entire amount of death-cum-retirement gratuity becomes exempt. Au contraire, if a case falls under sub-clause (iii) of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irement. Page 32 of the paper book is copy of the assessee s Pension Payment Order, which depicts the assessee s designation as Sr. Scientist, Department of Plant Breeding. On the Pensioner s Portion of this document, there is a reference to Rule 10, 11 and note thereunder of Civil Services Rules (CSR) V.II. As the assessee s pension has been computed 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 Agri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9) F.B. as including: a Board, a University, the Chief Justice of a High Court, having the power to issue rules, bylaws or regulations having the force of law. The above discussion manifests that CCSU is covered within the meaning of State . 8. As the assessee is found to be an employee holding a civil post under a State, in my considered opinion, the provisions of section 10(10)(i) are fully attracted in this case entitling him to exemption for the amount under consideration. Once a case falls under clause (i) of section 10(10), the same cannot be brought within the purview of clause (iii) of section 10(10). I, therefore, hold that the assessee is entitled to exemption u/s 10(10)(i) in respect of gratuity amount received in total u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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