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TMI Blog2022 (6) TMI 748X X X X Extracts X X X X X X X X Extracts X X X X ..... t assessee is not entitled for this claim because as an employee of Hisar Agriculture University he cannot be considered to be State Government Employees or holder of the Civil post under the State. In appeal before Ld. CIT(A), the Ld. CIT(A) observed in para 5.10 as below :- " 5.10 Considering the above discussion I hold that employees of University are not holders of civil post under a state and are not eligible for exemption u/s. 10(10)(i) of Income Tax Act. They are not covered by Section 10(10)(ii) as they are not receiving gratuity under the payment of gratuity Act, 1972. Hence, employees of the University are covered U/s. 10(10)(iii) of I.T. Act for which there is limit on the gratuity amount allowable. CBDT has approved the notification of Rs. 10 lakhs on the maximum amount of gratuity u/s. 10(10)(iii) of Income Tax Act vide its notification no 43/2010 dated 11.06.2010. This notification is applicable to employees who retire on or after 24.05.2010. Before 24.05.2010 the exemption u/s. 10(10)(ii) was restricted to Rs. 3,50,000/-. Therefore, I hold that the appellant who retired before 24.05.2010 is eligible for exemption on gratuity to the extent of Rs. 3,50,000/- only. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on with the affairs of the State. Hence, employees of the University are treated at par with the employees of the State Govt. 2.4 Provisions of Gratuity under the Income-tax Act, 1961 [section 10(10)]: IN CASE OF GOVERNMENT EMPLOYEES: Any death-cum-retirement gratuity received is wholly exempt under section 10(10)(i) of the Act. a) the Revised Pension Rules of the Central Government; or b) the Central Civil Services (Pension) Rules, 1972; or c) any similar scheme applicable to (i) the members of civil services of the Union, or (ii) holders of posts connected with defence or of civil posts under the Union, or (iii) the members of all India services, or (iv) the members of civil services of a State, or (v) holders of civil posts under a State, or (vi) the employees of a local authority. 2.5 That appellant was holding the appointment in connection with the affairs of the State and Haryana Civil Services (Revised Pension) Part-ll Rules, 2009 are applicable to the appellant, under which gratuity was received. These rules are effective from 01-01- 2006. In case of Govt, employees, who are holders of civil posts under a State, gratuity is exempt u/s 10(10)(i) of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rival contentions in right perspective, it will be apposite to set out the relevant parts of section 10, as under :- "(10) (i) any death-cum-retirement gratuity received under the revised Pension Rules of the Central Government or, as the case may be, the Central Civil Services (Pension) Rules, 1972, or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority or any payment of retiring gratuity received under the Pension Code or Regulations applicable to the members of the defence services ; (ii)..... (iii) any other gratuity received by an employee on his retirement or on his becoming incapacitated prior to such retirement or on termination of his employment, or any gratuity received by his widow, children or dependants on his death, to the extent it does not, in either case, exceed one-half month's salary for each year of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he employee should be holding a civil post. The assessee was appointed as a Research Assistant in December, 1971, who eventually rose to the post of Head of Department, Plant Breeding Department at the time of his retirement. Page 32 of the paper book is copy of the assessee's Pension Payment Order, which depicts the assessee's designation as Sr. Scientist, Department of Plant Breeding. On the 'Pensioner's Portion' of this document, there is a reference to Rule 10, 11 and note thereunder of Civil Services Rules (CSR) V.II. As the assessee's pension has been computed under Civil Services Rule, it goes to show that the assessee was holding a 'civil post' at the time of his retirement. No other contrary material has been placed on record by the ld. DR to show that the assessee was holding a post other than civil post. 7. The second requirement is that such civil post must be under a State. Page 20 of the paper book is a copy of Haryana and Punjab Agricultural University Act, 1970, which was passed by the Parliament and received the assent of the President on 2nd April, 1970. Under this Act of Parliament, two independent agricultural universities in place of the hitherto Punjab Agric ..... X X X X Extracts X X X X X X X X Extracts X X X X
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