TMI Blog1975 (1) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly, in lieu of the pension of Rs. 484.87, the pension was revised as Rs. 395.19 and death-cum-retirement gratuity payable at Rs. 17,820. This order was given retrospective effect from March 28, 1952, when the officer retired from the service. It appears that the difference between the sum of Rs. 395.19 which was payable under the revised fixation of the pension and the sum of Rs. 484.87 which was actually paid was adjusted from the death-cum-retirement gratuity of Rs. 17,820 and the pension subsequent to November 23, 1956, was paid at the rate of Rs. 395.19 per month. In pursuance of this Government Order refixing the pension, the assessment order for the assessment year 1952-53 onwards also was revised. Subsequently, the Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said sum even in the original assessment. In that view he allowed the appeal and excluded the said sum of Rs. 17,820. In respect of the assessment year 1960-61, the assessee in his revised return filed on April 9, 1962, admitted the pension of Rs. 6,923 but the Income-tax Officer considered that the arrears of pension due as per the Government order dated 2nd April, 1959, was also liable to be included in the taxable income of the assessee in the assessment year 1960-61, and worked out the arrears due at Rs. 16,386 being the difference between the original pension of Rs. 395.19 and the revised pension of Rs. 526.94 for the period from March 28, 1952, to March 31, 1959. This was in the view that the entire arrears became due only on April ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question was considered as if whether the sum of Rs. 17,820 paid to the assessee as death-cum-retirement gratuity is includible in the assessment year 1960-61 as if the gratuity amount has changed its character to arrears and advance of pension consequent on the Government order dated April 2, 1959. It is seen from the facts set out above that the confusion had arisen because of the original view held under the Government Order Ms. No. 1877 (Finance), dated November 23, 1956, that the assessee was entitled to the death-cum-retirement gratuity of Rs. 17,820 and a pension of Rs. 395.19 only. In view of the later Government order dated April 2, 1959, which was given retrospective effect from March 28, 1952, the interposition of the Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion in the assessment year 1960-61. But it is contended by the learned counsel for the revenue that the arrears of pension will have to be calculated on the difference between Rs. 526.94 and the sum of Rs. 395.19 for the entire period and it is not possible to split up the period and calculate the arrears as stated above. According to the learned counsel the difference between Rs. 484.87 and Rs. 395.19 had already been adjusted by the Government order dated November 23, 1956, and that, therefore, he shall be deemed to have been paid only Rs. 395.19 right from March 28, 1952, and the entire difference became due only on April 2, 1959. We are unable to agree with this contention of the learned counsel. The pension was paid at the rate of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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