9911796707
TMI Blog1984 (7) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... . The ITO brought to tax the said amount. The assessee appealed to the AAC. It was urged before him that the assessee retired from service on 31-3-1980 and the gratuity became due and payable during the 12 months next following the retirement. Thus, the gratuity became due and payable only on 1-4-1980 and, therefore, the gratuity amount should be brought to tax in the assessment year 1981-82 and n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1981-82 and not in the assessment year 1980-81. The learned departmental representative submitted that the assessee retired at 5 p.m. on 31-3-1980 and so the gratuity became payable on that date and was rightly taxed by the ITO. 3. We have considered the rival submissions. Rule 11(ii) reads as under : " The gratuity due to an employee shall be payable during the 12 months next following deat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered as having served for a fraction of the day before retirement. He will be entitled to gratuity only after reaching the superannuation age on the midnight of 31-3-1980. In our view, under the above rule, gratuity became due and payable only from 1-4-1980 within 12 months following the retirement and is taxable in the assessment year 1981-82 and not in the assessment year 1980-81. Thus, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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