9911796707
TMI Blog1978 (12) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... : The petitioner joined civil service in 1959 in the Industrial Management Pool, Central Services Class I. The pool which was constituted in 1957 was, however, abolished with effect from March 31, 1977. The pool officers were, however, given the option to either seek permanent absorption in public sector corporations, in which they were serving on deputation, or to retire from service. The petitioner was required to give his option for absorption in the Oil & Natural Gas Commission. The petitioner exercised the option for permanent absorption in the Commission and elected the alternative of receiving the death-cum-retirement gratuity and a lump-sum amount in lieu of pension and, therefore, became entitled to receive a lump-sum amount not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Govt. to be in public interest, such civil servant would " be deemed to have retired from service from the date of such absorption and shall be eligible to receive retirement benefits which he may have elected or be deemed to have elected and from such date as may be determined in accordance with orders of the Govt. applicable to him ". The extent of the retirement benefits and the terms on which these benefits were to be given to such a civil servant were determined by Govt. orders which were made from time to time. The interpretation of the Govt. orders involved a controversy as to the extent of exemption of the payment by way of retirement benefits from tax. In 1973, the question was examined and the President of India was pleased to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned in sub-rule (1) (where any lump sum amount, in addition to the death-cum-retirement gratuity), had been paid at any time between the period commencing on the 24th July, 1971, and ending with the commencement of the Central Civil Services (Pension) (Second Amendment) Rules, 1973, to any Government servant referred to in rule 37 who had elected the alternative of receiving the death-cum-retirement gratuity and a lump sum amount in lieu of pension, such payment shall be deemed to have been made in accordance with this rule, if the requirements of this rule have been satisfied." It was not disputed that r. 37A was added primarily to introduce uniformity in the matter of exemption under s. 10(10A) of the I.T. Act because, but for this rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... because to qualify for the latter part of that section another condition must also be satisfied and that is that the similar scheme must apply to members of the civil services of the Union or holders of post connected with Defence or of civil post under the Union to whom the Commutation Rules do not apply. It is true that the Commutation Rules do not apply to the terminal benefit under cl. (b), but that is not relevant so long as the rules apply to the members of the service or the holders of posts and it was not disputed that, until absorption in the new service, the petitioner was governed by the Commutation Rules. The intention of s. 10(10A)(i) appears to be to give exemption in respect of payment which may be made in commutation of pens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ieu of pension or other terminal benefits on retirement or deemed retirement and characterised it as being wholly unjust and unfair in that thew benefits are in the nature of at bare subsistence to a servant after he has spent a life-time in the service of the master. In the second instance, he challenged the taxation policy as being irrational and inequitable in that it did not give appropriate differential treatment in the matter of taxation to the fixed income groups in general and the civil servants in particular. The criticism of the taxation policy on both the counts appears to be fully justified. Any payment by way of pension or payment in lieu of pension or other terminal benefit to a retiring person, whether a civil servant or not, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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