1981 (10) TMI 58

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....T Act. The ITO ruled that there was no substance in the argument that this represented compensation on retrenchment of a workman under the Industrial Dispute Act. The ITO found that the payment received was for opting to retire voluntarily from the organisation. The salary certificate did not specifically mention that the payment received by the assessee was compensation received on retrenchment. So he taxed the aggregate of the three instalments amounting to Rs. 82,689, in one year. 3. The matter was taken up in appeal before the CIT(A), who held in view of a series of decisions. Tribunal that the entire amount cannot be taxed in one year as each of the three instalments was due and received by the assessee only in three separate years. ....

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....hich the voluntary retirement was accepted by the employer do not give substance to the departmental contention. The bonafides of the scheme of the reality of the terms and conditions stated in the scheme have not been successfully challenged or disputed on behalf of the department. Therefore, the three instalments were not liable to be assessed in one year and the assessed only in respect of the instalment received by him for the year. The assessee had no right, title or claim whatsoever in respect of the amounts until they became due and payable. We, therefore, hold on the terms of the voluntary separation scheme that the CIT(A) came to a correct conclusion in favour of the assessee. 7. The next issue that survives for our consideration....