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Issues:
Taxability of amount received from superannuation fund upon resignation. Analysis: The assessing officer found that the assessee received Rs. 66,040 from the superannuation fund upon resignation from Tata Iron & Steel Company. The officer contended that the amount should be added to the taxable income under the head 'Income from other sources' as it was not taxable under the head 'Salaries' or covered by any exemption under section 10 of the Income-tax Act. The officer also highlighted the provision for TDS on payments from superannuation funds. The Commissioner (Appeals) disagreed, stating that the amount was not 'income' and hence not assessable under the Income-tax Act. The revenue argued that the payment should be considered as income based on the inclusive definition of 'income' under section 2(24) of the Act. They also relied on various legal precedents and sections of the Act to support their position. The advocate for the assessee presented documents related to the superannuation fund and argued against the taxability of the amount. Significant changes were noted in the rules governing approved superannuation funds, emphasizing that payments must adhere to specific conditions to qualify for exemption under section 10(13) and exclusion from salary under section 17(3)(ii). Payments not meeting these conditions are not considered payments from an approved superannuation fund and do not fall under the exemptions provided. The judgment highlighted the importance of rule 3(b) in determining the taxability of such payments. The judgment concluded that the payment of Rs. 66,040 was taxable as it did not meet the conditions specified under rule 3(b) of the approved superannuation fund rules. The payment was deemed to be income under section 2(24) of the Act, and the provisions of sections 15, 17, and even 56 were applied to justify its taxability. The decision was in favor of the revenue, and the appeal was allowed, holding the amount as taxable.
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