9911796707
TMI Blog1982 (4) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... -11-1978, have been consolidated, heard together and are being disposed of by a common order for the sake of convenience. The years of assessments involved in these appeals are 1972-73 in the case of the assessee, Shri R.D. Chadha, 1975-76 in the case of the assessee, Shri Y.D. Sehgal, 1976-77 in the case of the assessee, Shri S.N. Sikka, and 1975-76 in the case of the assessee, Shri P.C. Sachdev for which the respective previous years ended 31-3-1972, 31-3-1975, 31-3-1976 and 31-3-1975. 2. The assessees are the employees of the Food Corporation ofIndia, a public sector undertaking of the Central Government. The assessees were working in different departments of the Government of India and they retired from the Government service on accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entire value of the commuted pension and the terminal benefit paid to each of the assessees was exempt from inclusion in their respective total incomes. 4. Later on, the Commissioners concerned being satisfied that the aforesaid orders passed by the ITO under section 154 were erroneous in so far as they were prejudicial to the interests of the revenue, issued show cause notices to the assessees as to why the said orders be not revised under section 263. After cause was shown and the assessees concerned were heard, the Commissioners passed the respective orders under section 263, wherein it was held that the orders of the ITO under section 154 were clearly erroneous and prejudicial to the interests of the revenue. Under the powers vested ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l benefit received by a civil servant on his retirement from the Government service and absorption in a public sector corporation under rule 37A(1)(b) of the Central Civil Services (Pension) Rules, equal to twice the amount of the commuted value of one-third of his pension in addition to the lump sum amount under rule 37(1A)(a) of the commuted value or one-third of his pension, is exempt from tax under section 10(10A)(i). This decision of theDelhiHigh Court has since been accepted by the CBDT vide Circular No. 286, dated17-11-1980. Since the factual position in the present cases is similar to that in the case of Karunakaran and since the decision of the Delhi High Court in Karunakaran's case has been accepted by the CBDT, we, respectfully, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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