COMMISSIONER OF INCOME TAX Vs. DEEPAK VERMA

JUDGEMENT

(1.) This appeal was admitted on the following question of law:-

(2.) On the same day, with the consent of the learned counsel for the parties, arguments were also finally heard. The genesis, in formulation of the aforesaid question, lies in the following facts:

(3.) The respondent is an individual who filed his income tax return for the assessment year 2001-02 on 27th July, 2001 declaring his income at Rs.56,87,167/-. On perusal of the note appended to the computation of income, the Assessing Officer noticed that the assessee had received an amount of Rs. 35 lacs, in addition to normal retiral benefits at the time of his retirement, from H.T. CGU Project Services Pvt. Ltd (employer). This amount of Rs. 35 lacs was claimed as exempted from income-tax by the assessee though the employer had deducted the tax at source and Form No. 16 had been issued to this effect. This return was processed and accepted on 17th July, 2002.