1981 (1) TMI 56

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....Dam site. In the year 1978 the petitioner chose to be absorbed in the service of the undertaking of the aforementioned Governments and retired voluntarily from the service of the Govt. of India. The petitioner was eligible to certain retirement benefits as he had completed 25 years of service in the Central Govt. It is sufficient to state that he was entitled to either draw pension at the scale permissible or commute the same and draw a lump sum. The petitioner chose to commute his pension and as a result he was entitled to receive the sum of Rs. 93,567.60 as the commuted amount of pension which the Govt. sanctioned. The Accountant-General of Karnataka, Bangalore, by his communication dated August 25, 1980, PAE/Cent/80-81 bearing No. 8411 i....

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....loyee receives any gratuity, the commuted value of one-third of the pension which he is normally entitled to receive, and (b) in any other case, the commuted value of one-half of such pension such commuted value being determined having regard to the age of the recipient, the state of his health, the rate of interest and officially recognised tables of mortality : Provided that the maximum limit of payment specified in subclause (ii)(a) or sub-clause (ii)(b) shall not apply in respect of any such payment made before the 19th day of August, 1965. " Whether the commuted pension is exempted from taxation has been the subject-matter of decision by the Bombay Income-tax Appellate Tribunal which appears to have held that the same is entitled ....