COMMISSIONER OF INCOME TAX Vs. PAVRI N J

JUDGEMENT

(1.) AT the instance of the Department, the Tribunal has referred the following question for the opinion of this Court in respect of asst. year 1977 78, under S. 256(1) of the IT Act, 1961 :

(2.) THE assessee is an individual. He retired from Air India on 1st Aug., 1968. At that time, the assessee availed of full exemption of Rs. 30,000 under S. 10(10) as it then stood. In June, 1976, he retired from Rallies India Ltd. In June, 1976, he received gratuity of Rs. 47,250. This time, the assessee claimed Rs. 23,333 exempt under S. 10(10)(iii). This was denied by the AO vide order dt. 18th March, 1980. This order was passed under S. 143(3) of the IT Act. The assessee preferred an appeal against an order of AO to AAC who vide his order dt. 10th Dec., 1980, confirmed the disallowance made by the AO. Thereafter, appeal came to be preferred to Tribunal. Vide order bearing No. ITA/353/Bom/1981 the order passed by the authorities below came to be set aside. The Tribunal allowed the claim of the assessee for exemption under S. 10(10)(iii) of Rs. 23,333. Consequently, the present reference has come before this Court.

(3.) IN order to decide the above question, it would be relevant to quote S. 10(10) of the IT Act, 1961, as originally enacted.