TaxTMI 
TaxTMI 
TaxTMI 
2016 (5) TMI 1632
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.... 2. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the appellant that the AO was not justified in reopening the assessment under section 147 read with Section 148 of the Act. 3. On the facts and circumstances of the case, the reassessment proceedings initiated by the learned A.O. are bad in the eye of law as the reasons recorded for the issue of notice under Section 148 are based merely on account of change of opinion. 4. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the order of the AO, ignoring the contention of the assessee that no speaking order has been passed by the AO for disposing objections raised by the assessee against the reasons recorded by him in view of Supreme Court landmark judgment in the case of GKN Driveshafts (India) Ltd. 259 ITR 79 (SC). 5. (i)0n the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the order of the AO, despite the fact that the initiation of proceedings under section 147, read with section 148 are bad as the co....
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....e AO accordingly made the addition of Rs.4,78,150/-. 6. Being aggrieved the assessee carried the matter to the ld. CIT(A) who confirmed the action of the AO by observing in para 5.6 and 5.7 of the impugned order as under: "5.6 There are following facts related to DHBVNL which are discussed below for the clarity on the issue under consideration. These facts clearly indicate that the employees of DHBVNL are neither government employees nor they are not holders of civil posts under the state a) DHBVNL is governed by the provisions of Electricity Act, 2003. The provisions of this Act prevail in preparing the accounts wherever there are inconsistency with the Companies Act, 1956. DHBVNL prepares its financial statement in accordance with the financial reporting framework prescribed under the Companies Act, 1956 which comprises of balance sheet, statement of profit and loss, cash flow statement and summary of significant accounting policies. Its accounts are audited as per the provisions of companies Act, 1956. It is obvious from these facts that DHBVNL is a company and follows the accounting principles as applicable to a company. b) HSEB was constituted und....
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....fication i.e. Haryana Civil Services ( Revised Pension ) Part 1 & Part 2 rules for Pension and pension related matters but it does not mean that by following the rules of State Government, the employees of DHBVNL becomes the Government employees. In light of the above facts, DHBVNL cannot be considered as local authority and its employees cannot be considered as holders of civil posts under a state. Therefore, they are not eligible for exemption u/s. 10(10)(i) of Income Tax Act. 5.7 Considering the above discussion, the employees of DHBVNL are held to be not eligible for' exemption u/s. 10(10)(i) of Income Tax Act. They are not covered by Section 10(10)(ii) as they are not receiving gratuity under the payment of gratuity Act, 1972. Hence, employees of the DHBVNL are covered U/s. 10(10)(iii) of I.T. Act for which there is limit on the gratuity amount allowable. CBDT has approved the notification of Rs. 10 lakhs on the maximum amount of gratuity u/s. 10(10)(iii) of Income Tax Act vide its notification no 43/2010 dated 11.06.2010. This notification is applicable to employees who retire on or after 24.05.2010. Before 24.05.2010 the exemption u/s. 10(10)(ii) was restricted ....
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...., was furnished which is placed on record). 8. In his rival submissions the ld. DR strongly supported the orders of the authorities below and further submitted that the assessee was not an employee of the Haryana State Government rather it was an employee of Dakshin Haryana Bijli Vitran Nigam Ltd. which was a corporation. It was also submitted that the assessee was eligible for exemption u/s 10(10)(iii) of the Act and wrongly claimed the exemption u/s 10(10)(i) of the Act. Therefore, the ld. CIT(A) was fully justified in confirming the action of the AO. 9. I have considered the submissions of both the parties and carefully gone through the material available on the record, to resolve the present controversy it is relevant to discuss the provisions contained in Section 10(10)(i), (ii) & (iii) of the Act which read as under: "(10) (i) any death- cum- retirement gratuity received under the revised Pension Rules of the Central Government or, as the case may be, the Central Civil Services (Pension) Rules, 1972, or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Uni....
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....n Haryana State Electricity Board which later on was bifurcated into 4 utilities one of which was Dakshin Haryana Bijli Vitran Nigam Ltd. and the assessee was employee of the said corporation, which adopted the Haryana Civil Service (Revised Pension), Part-1 rules issued by the Haryana Government. The Haryana Government Power Department in its notification dated 14.08.1998 provided the conditions at the time of transfer of personnel in Clause 11 which read as under: "The terms and conditions of the services applicable to them on the effective date, the pay, pattern of Dearness Allowances, Additional Dearness Allowances, Interim Relief, City Compensatory Allowances, House Rent allowances, Shift Duty allowances, Hardship allowances, medical facility, medical allowances, all other allowances on the projects, field and head office, leave of all kinds (including casual leave), Pension and Death-cum-retirement benefit, gratuity and leave encashment of every nature shall not be in any way be less favourable to them than those applicable to them immediately before such date." 11. From the above notification, it is clear that the employees who were transferred in the Power Depar....