1984 (7) TMI 101

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....sp; The assessee retired from Canara Bank on 31st March, 1980. After 1st April, 1980, 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 31st March, 1980 and the gratuity became due and payable during the 12 months next following the retirement. Thus, the gr....

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....ollowing the retirement. Thus, he urged that the gratuity under the rule became payable only after 1st April, 1980 and is taxable only in the asst. yr. 1981-82 and not in the asst. yr. 1980-81. The ld. Departmental Representative submitted that the assessee retired at 5 P.M. on 31st March, 1980 and so the gratuity became payable on that date and was rightly taxed by the ITO. 3. We have consider....

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....duties, which normally cease after working hours. The superannuation age will be reached only on the midnight of 31st March, 1980, as otherwise the officer would have been considered as having served for a fraction of the day before retirement. He will be entitled to gratuity only after reaching the superannuation age on the midnight of 31st March, 1980. In our view, under the above rule, gratuity....