COMMISSIONER OF INCOME TAX Vs. J VISALAKSHI

JUDGEMENT

(1.) THIS is an application made under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), seeking a direction to the Tribunal to state a case and refer the following question of law to this court for opinion,"Whether the Appellate Tribunal was right and had valid materials to hold that the ex gratia compensation of Rs. 63, 230 received by the assessee consequent on his resignation from the employment is entitled to the relief under section 89(1) of the Income-tax Act ?" The Tribunal has declined to make a reference on the ground that even resignation also results in termination of service.

(2.) THEREFORE, it falls under section 89(1) read with section 17(3) of the Act. In view of this, the point for consideration is whether the ex gratia compensation of Rs. 63, 230, received by the assessee, consequent on his resignation from employment, is entitled to the relief under section 89(1) of the Act. Section 89(1) and section 17(3) of the Act are as follows: