TMI Blog1979 (12) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... ers Co. (P.) Ltd. The ITO found that the assessee joined the above company in Calcultta on February 5, 1957. His services were thereafter lent to M/s. Heilgers (Burma) Ltd., in Burma on and from the 1st September, 1957. He rejoined the Calcutta company on the 22nd February, 1965. He served the Calcutta company for some time and, then he resigned and left Calcutta. From the salary certificate, the ITO found that the assessee's salary was paid up to April, 1968. The service agreement entered into on the 20th December, 1956, stipulates that the assessee was to serve the employers for three years and nine months from the date of his arrival. The issue before the ITO related to the rebate on the provident fund contribution and exclusion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the employers on September 1, 1957, there was termination of the assessee's service with the Calcutta company. In that view of the matter, according to the ITO, the Calcutta company's contribution to the assessee's provident fund account during the period of his absence from India, i.e., from September 1, 1957, to February 21, 1965, was nothing but an ex gratia payment by the employers. The ITO completed the assessment under s. 143(3) read with s. 174 of the Act, 1961, on a total income of Rs. 1,51,945. He simultaneously completed the assessments for the assessment years 1966-67 and 1967-68. Before the AAC the assessee's representative placed a copy of the employer's letter dated 23rd August, 1967. In this letter, it was suggested to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fund account during the period from September 1, 1957, to February 21, 1965, was in the nature of an ex gratia payment. Learned counsel for the submitted to the Tribunal that in the Burma company the Calcutta Company was holding 1,700 out of 5,000 shares. The Calcutta company, therefore, was not an independent entity and it was wrong to suggest that the assessee's period of service with the Burma company should not be taken into account as services rendered under the Calcutta company. The Tribunal found that the circumstances leading to the assessee's resignation from his services with M/s. F. W. Heilgers Co. (P.) Ltd., in Calcutta, should be construed as beyond his control and the assessee was, therefore, entitled to the benefit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pears that under this rule the accumulated balance due and becoming payable to an employee participating in a recognised provident fund is excluded from the computation of his total income, inter alia, if though he has not rendered continuous service for a period of five years or more, his service has been terminated by any cause beyond his control. In the instant case, the Tribunal has found on the facts that the assessee tendered his resignation for reasons recorded in the employer's letter of the 23rd August, 1967. These were reasons beyond the control of the assessee. The Tribunal has also found that the employer wrote this letter bona fide and not for any ulterior purposes. On the basis of these factual findings by the Tribunal, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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