T A RAMASUBRAMANIAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee was a civil servant under the Government of Tamil Nadu and retired from service on 28th March, 1952. Originally his pension was fixed on Rs. 484.87 per men sum and was being paid at that rate. Later on in the view that the assessee was entitled to the benefits of the liberalised Pension Rules, 1950 in Government Order Ms. No. 1877 (Finance) dt. 23rd November, 1956 he was held entitled to a death-cum-retirement gratuity of Rs. 17, 820/- and a pension of Rs. 395.19. Accordingly 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 28th March, 1952 when the officer retired from the service.

(2.) 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 23rd November, 1956 was paid at the rate of Rs. 395.19 per month. In pursuance of this Government Order re-fixing the pension, the assessment order for the asst. yr. 1952-53 onwards also was revised. Subsequently the Government revised the pension payable to the assessee in Government Order Ms. No. 356, (Finance) dt. 2nd April, 1959. Under that Government Order in lieu of the pension of Rs. 395.19 per month and the death-cum-retirement gratuity of Rs. 17, 820/- sanctioned in Government Order Ms. 1877 (Finance) dt. 23rd November, 1956 the Government granted w.e.f. 28th March, 1952 the superannuating pension of Rs. 526.94 per month. The Government also sanctioned w.e.f. 28th March, 1952 a special additional pension of Rs. 600 per annum in consideration of certain special services rendered by the assessee when he was in service. The said Government order also directed that the arrears of pension due to the officer under that order should be adjusted against the death-cum-retirement gratuity of Rs. 17, 820/- recoverable from him and the balance of death-cum-retirement gratuity should be recovered in 12 monthly instalments beginning from January 1959.

(3.) IT is stated that the legal representative of the assessee had filed an application under s. 89(1) of the IT Act, 1961. The Tribunal has found that he would be entitled to the benefit of the provision. We have no doubt that the ITO would give him the benefit available under s. 89(1).