9911796707
TMI Blog2022 (11) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the assessment year under consideration. The assessee filed return of income on 31.05.2017 declaring total income of Rs.42,63,710/- which was processed under section 143(1) of the Income Tax Act, 1961. Later, the assessee filed his revised Return of Income for the impugned A.Y. 2017-18 on 12.09.2017. Subsequently, the case was selected for scrutiny under CASS and accordingly notice under section 143(2) of the Income Tax Act, 1961 (hereafter referred to as 'the Act') was issued on 11.08.2018 which was duly served upon the assessee. In response to the said notice, the assessee filed reply on 04.09.2018. The A.O. issued statutory notice under section 142(1) of the Act along with detail questionnaire on 12.06.2019. In response, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uest and was not invalided from service on account of bodily disability attributable to or aggravated by such service, the disability pension amounting to Rs.8,43,226/- shall not be exempt from Income Tax and is being added back to the taxable income of the assessee for the impugned A.Y. 2017-18 and determined the total income of the assessee at Rs.45,72,036/- as against the returned income by the assessee at Rs.37,28,810/- and passed the assessment order under section 143(3) of the I.T. Act, 1961 vide order dated 19.11.2019 and also initiated penalty proceedings under section 270A of the I.T. Act, 1961 separately. 2.1. Aggrieved by the order of the A.O, the assessee carried the matter in appeal before the Ld. CIT(A), NFAC, Delhi and filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... athur & Ors. Vs., Union of India & Ors. in W.P.(C) No.953/2019 dated 30.08.2019 wherein the Hon'ble Supreme Court directed the respondents 'pending further consideration, the parties shall maintain status quo in the matter'. He also drew the attention of Bench page-25 of the paper book and submitted that the CBDT in its Circular dated 24.06.2019 vide No.13/2019 [F.No.173/250/2019-ITA-I] exempted the armed forces personnel who have been invalided from service on account of bodily disability attributable to or aggravated by such service and not to personnel who have been retired on superannuation or otherwise. He also drew the attention of Bench at page-36-38 of the paper book which is the Circular issued by the Principal Controller of Defenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed the addition made by the A.O. with similar observations. I find in the instant case that at the time of disbursement of amount, no TDS has been deducted in the case of assessee and from careful perusal of the order of the Hon'ble Supreme Court dated 30.08.2019, it is noticed that the Hon'ble Supreme Court directed the respondents to maintain status quo in the matter. The Circular issued by the CBDT as well as in the Circular of Principal Controller of Defence Accounts (Pensions) in which it is clearly stated that tax exemption shall be available to the Defence Forces Personnel who have been invalidated from service on account of bodily disability while in service. Since the Ld. D.R. has failed to furnish any contrary material or decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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