Law:

Section:

In order to claim deduction under section 88 payment has to be made in previous year relevant to assessment year Section 88, read with section 89, of the Income-tax Act, 1961 and rule 21A of the Income-tax Rules, 1962 - Tax rebate - Assessment year 1997-98 - Whether relief under section 88 is confined to amount deposited or paid in previous year - Held, yes - Whether arrears of additional salary compulsorily credited to GPF account of employees of State Electricity Board could be apportioned to various previous years for computing rebate under section 88 - Held, no FACTS The pay and allowance of the assessees who were workers and officers of State Electricity Board were revised with effect from 1-8-1993 on a long term bilateral agreement entered into in 1995. As per the said agreement the revised benefits for the period from 1-8-1993 to 31-1-1995 were to be drawn by the assessees as arrears and certain portion of arrears amount was to be compulsorily credited to their GPF account. It was admitted that the entire arrears formed a part of the total income for the financial year 1996-97 relevant to the assessment year 1997-98 and as a result, there would be an abnormal increase in the total income of the assessee for the relevant assessment year. Since the arrears related to the financial years 1993-94, 1994-95, 1995-96 the assessees applied to their drawing and disbursing officer for relief under section 89. Accordingly, the assessees were allowed to compute the relief by apportioning the arrears of pay received by them to the respective previous years, but they were not allowed to apportion the amount of arrears compulsorily credited to their GPF account to the respective periods to which they related and it was treated as their contribution made to the GPF in the year 1996-97. The assessees submitted that when additional salary was apportioned to various previous years, compulsory contribution made to GPF from the additional salary shall also be apportioned to various previous years. According to the assessee, rule 21A stipulates how the arrears have to be apportioned and to compute the tax for the purpose of relief under section 89 and such computation as per…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492