Section 89(1) relief for arrears of salary perquisite allowed where employer contribution formed part of taxable salary.

Arrears of an employer's contribution to an approved superannuation fund, treated statutorily as a perquisite and therefore part of salary, qualify for relief under section 89(1) when received in a later year. The Tribunal noted that section 17(1)(iv) and section 17(2)(vii) bring the relevant employer contribution within salary income, and that Rule 21A read with Form 10E governs the claim procedure. A contrary employer circular could not override the statutory scheme. Relief under section 89(1) was held admissible and the claim was directed to be allowed.

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Issues: Whether relief under section 89(1) of the Income-tax Act, 1961 was admissible in respect of arrears received by the assessee on account of the employer's contribution to an approved superannuation fund, treated as a perquisite, and whether Rule 21A and Form 10E governed such claim.

Analysis: The assessee received arrears linked to the employer's contribution to a defined contribution superannuation scheme. The Tribunal noted that section 17(1)(iv) treats perquisites as part of salary, and section 17(2)(vii) brings employer contribution above the prescribed limit within the ambit of perquisite. It further held that section 89(1) applies to salary received in arrears, and that Rule 21A(1)(a) read with Rule 21A(2), together with Form 10E under Rule 21AA, covers the claim. The internal circular of the employer could not override the statutory scheme.

Conclusion: Relief under section 89(1) was held admissible on the arrears received as perquisite, and the assessee's claim was directed to be allowed.

Ratio Decidendi: Where a perquisite is statutorily included in salary, arrears of such perquisite received in a later year qualify for relief under section 89(1), and the prescribed rules and Form 10E apply accordingly.

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