1981 (3) TMI 95 - AT - Income Tax

Summary

The ITAT Ahmedabad-C heard an appeal regarding the taxation of gratuity. The Commissioner believed the gratuity accrued on the retirement date, but the ITAT disagreed, stating that the employee did not acquire a vested right to receive gratuity immediately upon retirement. The ITAT ruled in favor of the assessee, stating that the gratuity did not accrue until the specified payment dates agreed upon by the employer and employee. The appeal was allowed, and the CIT's order was set aside in favor of the ITO's decision.