2000 (11) TMI 53

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.... in holding that section 89(1) was applicable to the assessee's case ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is legally correct in holding that the amount of leave encashment together with regular salary of the assessee represented salary for more than 12 months ?" The factual position, which is almost undisputable is essentially as follows : For the assessment year 1972-73 corresponding to the financial year 1971-72 the assessee, an individual, claimed relief under section 89(1) of the Act in respect of Rs. 10,709, received on account of encashment of accumulated leave. The Income-tax Officer rejected the claim on the ground that such relief was admissible only in response to the assessee's sa....

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....its in lieu of salary" included any payment, other than those specifically mentioned therein, received by an assessee from an employer or a former employer, to the extent to which it did not consist of contributions made by the assessee or interest on such contributions. It was, therefore, held that the amount in question falls under the category of "profits in lieu of salary" under section 17(3)(ii) and consequently forms part of the salary of the assessee. It was further held that the provisions of section 89(l) of the Act applied to the facts of the case. On being moved by the Revenue, the questions as set out above, have been referred for the opinion of this court. We have heard learned counsel for the Revenue. There is no appearance....