TaxTMI 
TaxTMI 
1982 (6) TMI 163
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....i T.V. Hindoocha is exempt. The assessee is a salaried employee of M/s New Horizon Sugar Mills Ltd., Kandamangalam, Pondicherry. During the relevant previous year, his admitted salary income was Rs. 48,960. He had also received Rs. 4,317 as encashment of earned leave, which he claimed as exempt. The ITO declined to accept his claim and charged it to tax, but in appeal, the AAC allowed the assessee....
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....ent case we are concerned with encashment of leave while in service. 3. We consider that there is no merit in the departmental appeal. Though the order of the Tribunal referred to above is concerned with the case of encashment of leave on retirement, the ratio of the decision and the principles stated therein are not confined to the facts that obtained in that case, but are equally applicable t....
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....sive one, and the various clauses in s. 17(1) to (3) do not cover this payment, we have to see whether it can fall under the ordinary meaning of 'salary'. The ordinary meaning of the word 'salary' according to the Chamber's Dictionary is a fixed periodical payment made to a person doing other than manual or mechanical work, as compared to wages, which means the payment received by an employee from....
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.... said amount is not chargeable at all to income-tax on the well known principle that if a particular item of receipt falls under a specific head of income but cannot be charged for any reason, it cannot be charged under any other or residuary head. 4. Reference was made at the hearing by the ld. Departmental representative to the introduction of s. 10(10A) of the IT Act specifically, providing ....