1984 (7) TMI 95

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...., he received a sum of Rs. 30,681 towards gratuity. The ITO brought to tax the said amount. The assessee appealed to the AAC. It was urged before him that the assessee retired from service on 31-3-1980 and the gratuity became due and payable during the 12 months next following the retirement. Thus, the gratuity became due and payable only on 1-4-1980 and, therefore, the gratuity amount should be b....

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.... 1-4-1980 and is taxable only in the assessment year 1981-82 and not in the assessment year 1980-81. The learned departmental representative submitted that the assessee retired at 5 p.m. on 31-3-1980 and so the gratuity became payable on that date and was rightly taxed by the ITO. 3. We have considered the rival submissions. Rule 11(ii) reads as under : " The gratuity due to an employee shal....