Law:

Section:

Section 10(10A) of the Income-tax Act, 1961 - Pension - Assessment year 1989-90 - Assessee, president of a company, became an executive director - On 6-9-1988, assessee, president of company, on completion of 58 years received retirement benefits - However, on 7-9-1988 he become an executive director of company - Whether assessee was entitled to benefit of section 10(10A) - Held, yes JUDGMENT 1. The assessee was president of Shree Synthetics Ltd., from 1-8-1970 to 6-9-1988. He, however, became an executive director of the company from 7-9-1988. 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 (the Act). His claim was negatived by the Assessing Officer. On appeal, the Commissioner (Appeals) upheld the assessees claim and directed the Assessing Officer to scrutinise the claim of deduction as per law and allow the same in the computation of total income. 2. The revenue felt dissatisfied and took appeal to the…

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