COMMISSIONER OF INCOME TAX Vs. S R RATHI

JUDGEMENT

(1.) THE assessee was president of Shree Synthetics Ltd., from August 1, 1970, to September 6, 1988. He, however, became an executive director of the company from September 7, 1988. It seems that he received gratuity and leave encashment and for that he claimed deduction of Rs. 93,780 under Clauses (10A) and (10AA) of Section 10 of the Income-tax Act, 1961. His claim was negatived by the Assessing Officer. On appeal the Commissioner of Income-tax (Appeals) upheld the assessee'S claim and directed the Assessing Officer to scrutinise the claim of deduction per law and allow the same in the computation of total income.

(2.) THE Revenue felt dissatisfied and took appeal, to the Income-tax Appellate Tribunal. THE Tribunal on consideration of the matter found that the assessee had attained 58 years on September 6, 1988, entitling him to retiremental benefits and that the Commissioner of Income-tax (Appeals) had correctly decided the matter. On the second issue, it found on the facts that deduction of Rs. 1,46,000 was also justified.