Dharam Jeet Dahiya, Hisar v. ITO, Hisar

ITA 3713/DEL/2016 | 2011-2012
Pronouncement Date: 26-10-2016 | Result: Allowed

Appeal Details

RSA Number 371320114 RSA 2016
Assessee PAN AAWPB5323P
Bench Delhi
Appeal Number ITA 3713/DEL/2016
Duration Of Justice 4 month(s) 4 day(s)
Appellant Dharam Jeet Dahiya, Hisar
Respondent ITO, Hisar
Appeal Type Income Tax Appeal
Pronouncement Date 26-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC 2
Tribunal Order Date 26-10-2016
Date Of Final Hearing 17-10-2016
Next Hearing Date 17-10-2016
Assessment Year 2011-2012
Appeal Filed On 21-06-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SM C - II NEW DELHI BEFORE SH. N. K. SAINI A CCOUNTANT M EMBER ITA NO. 3713 /DEL/2016 : ASSTT. YEAR : 2011 - 1 2 DHARAM JEET DAHIYA 88 ADARSH NAGAR GANGWA ROAD HISAR - 125001 (HARYANA) VS INCOME TAX OFFICER WARD - 1 HISAR (HARYANA) (APPELLANT) (RESPONDENT) PAN NO. A A WPB5323P ASSESSEE BY : NONE REVENUE BY : SH. RAJESH KUMAR SR. DR DATE OF HEARING : 17.10 .201 6 DATE OF PRONOUNCEMENT : 26 . 10 .201 6 ORDER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 16 .0 3 .2016 OF LD. CIT(A) FARIDABAD . 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL RELATES TO THE DENIAL OF EXEMPTION U/S 10(10) OF THE INCOME TAX ACT 1 961 (HEREINAFTER REFERRED TO AS THE ACT) OUT OF THE AMOUNT RECEIVED BY THE ASSESSEE TOWARDS ARREAR OF GRATUITY TO THE EXTENT OF RS.6 50 000/ - AND ON ACCOUNT OF ARREARS OF LEAVE ENCASHMENT TO THE EXTENT OF RS.2 82 232/ - . NOBODY WAS PRESENT ON BEHALF OF THE ASSESSEE NEITHER ANY ADJOURNMENTS WAS SOUGHT. 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE WAS AN EMPLOYEE OF CHOUDHARY CHARAN SINGH HARYANA AGRICULTURAL ITA NO. 3713 /DEL /201 6 DHARAM JEET DAHIYA 2 UNIVERSITY HISAR AND RECEIVED ARREAR OF DEATH CUM RETIREMENT GRATUITY OF RS.6 50 000/ - . THE ASSESSEE FILED THE RETURN OF INCOME ON 11.05.2012 DECLARING AN INCOME OF RS. 5 27 880/ - WHICH WAS PROCESSED U/S 143(1) OF THE ACT ON THE RETURNED INCOME. THE AO OBSERVED THAT THE ASSESSEE IN THE COMPUTATION OF TOTAL INCOME ANNEXED WITH THE RETURN OF INCOME FURNISHED THE DETAILS OF RECEIPT OF ARREARS OF GRATUITY AND THE DETAILED NOTE ON PAYMENT OF GRATUITY LEAVE ENCASHMENT AND LTC ETC. THE AO DID NOT ALLOW THE CLAIM OF THE ASSESSEE FOR EXEMPTION OF RS.10 00 000/ - RECEIVED ON ACCOUNT OF GRATUITY AND RESTRICT ED THE SAME TO RS.3 5 0 000/ - AND ALSO DID NOT ALLOW LEAVE ENCASHMENT OF RS.2 82 232 . ACCORDINGLY THE INCOME WAS ASSESSED AT RS. 14 60 112 / - BY OBSERVING AS UNDER: IN VIEW OF THE FINDING GIVEN IN THE FOREGOING PARAS THE EMPLOYEE OF THE CCS HAU CANNOT BE TERMED AS GOVT. EMPLOYEE AS NEITHER THEY ARE UNDER THE CONTROL OF HARYANA GOVT. NOR THEIR PAY IS DEBITED TO THE CONSOLIDATED FUNDS OF THE STATE. APPLICATION OF CSR VOL. II DOES NOT CONFER VICE - VERSA STATUS AS GOVT. EMPLOYEE UNDER ANY RULE/AUTHORITY AS CLAI MED BY THE ASSESSEE. HENCE IT IS CLEAR THAT UNIVERSITY EMPLOYEES ARE COVERED U/S 10(10)(III) OF THE INCOME - TAX ACT 1961 BECAUSE NEITHER SEC. 10(10)(II) APPLIES AS THEY ARE NOT RECEIVING GRATUITY UNDER THE PAYMENT OF GRATUITY ACT 1972 NOR FROM THE GRATUIT Y FUNDS MENTIONED U/S 10(10)(I) OF THE ACT. IN VIEW OF THESE FACTS THE EXEMPTION ALLOWABLE TO THE ASSESSEE IN ITA NO. 3713 /DEL /201 6 DHARAM JEET DAHIYA 3 RESPECT OF GRATUITY AND LEAVE ENCASHMENT IS ONLY RS. 6 .5 LACS AND RS. 2 82 232 / - RESPECTIVELY WHICH HAS ALREADY BEEN CLAIMED/ ALLOWED. THUS THE CL AIM OF THE ASSESSEE FOR EXEMPTION OF GRATUITY RECEIVED IN ARREAR OF RS. 6 50 000/ - IS NOT IN ORDER AND IS ADDED BACK TO THE INCOME OF THE ASSESSEE. 4. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO SUSTAINED THE ADDITION MADE BY THE AO BY OBSERVING IN PARA 25 OF THE IMPUGNED ORDER AS UNDER: 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 AP PROVED THE NOTIFICATION OF RS. 10 LAKHS ON THE MAXIMUM AMOUNT OF GRATUITY U/S. 10(10)(III) OF INCOME TAX ACT V IDE ITS NOTIFICATION NO 43/2010 DATED 11.06.2010. THIS NOTIFICATION IS APPLICABLE TO EMPLOYEES WHO RETIRE ON OR AFTER 24.05.2010. BEFORE 24.05.201 0 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. THE ADDITIONS MADE BY AO OF RS. 6 50 000/ - ON A CCOUNT OF EXCESS CLAIM OF GRATUITY ARE UPHELD. SIMILARLY THE ADDITION MADE BY THE AO ON ACCOUNT OF LEAVE ENCASHMENT RS.2 82 232/ - . THE APPEAL ON THIS GROUND IS DISMISSED. ITA NO. 3713 /DEL /201 6 DHARAM JEET DAHIYA 4 5. NOW THE ASSESSEE IS IN APPEAL. 6. I HAVE CONSIDERED THE SUBMISSIONS OF LD. DR AN D PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IT IS NOTICED THAT THE ISSUE S UNDER CO NSIDERATION HAVE ALREADY BEEN DECIDED BY THE VARIOUS BENCHES O F THE ITAT NEW DELHI IN FAVOUR OF THE ASSESSEE WHEREIN IDENTICAL FACTS WERE INVOLVED THE ASSESSEE HAS ALSO RELIED ON THE FOLLOWING DECISIONS IN HIS WRITTEN SUBMISSIONS: SH. RAM KANWAR RANA VS ITO WARD - 3 HISAR IN ITA NO. 1307/DEL/2016 DATED 16.06.2016 SH. BHUPENDRA KUMAR NEHRA VS ITO WARD - 1 HISAR IN ITA NO. 1222/DEL/2016 DATED 20.07.2016 SH. RAM DHARI RANA VS ITO WARD - 3 HISAR IN ITA NO. 1360/DEL/2016 DATED 10.08.2016 7 . IT IS NOTICED THAT AN IDENTICAL ISSUE RELATING TO THE GRATUITY HAVING SIMILAR FACTS HAS ALREADY BEEN ADJUDICATED BY THE ITAT DELHI BENCHES SMC - 1 NEW DELHI IN ITA NO. 1307/DEL/2016 FOR THE ASSESSMENT YEAR 2010 - 11 IN THE CASE OF RAM KANWAR RANA VS ITO WARD - 3 HISAR WHEREIN THE RELEVANT FINDINGS HAVE BEEN GIVEN IN PARAS 4 TO 10 OF THE ORDER DATED 16.06.2016 WHICH READ AS UNDER: 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE REL EVANT MATERIAL ON RECORD. THE CONTROVERSY IN THIS APPEAL CAN BE VIEWED SEPARATELY IN RESPECT OF ITA NO. 3713 /DEL /201 6 DHARAM JEET DAHIYA 5 RECEIPT OF GRATUITY AMOUNT AND LEAVE ENCASHMENT. IN SO FAR AS THE ADDITION ON ACCOUNT OF GRATUITY RECEIVED BY THE ASSESSEE AMOUNTING TO RS.6 50 000/ - IS CONCE RNED IT IS FOUND THAT THE CASE OF THE ASSESSEE IS THAT THIS AMOUNT FALLS U/S 10(10)(I) OF THE ACT. ON THE CONTRARY THE REVENUE HAS TREATED IT AS A CASE FALLING U/S 10(10)(III). IN ORDER TO APPRECIATE THE 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 O R 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 COMPLETED SERVICE CALCULATED ON THE BASIS OF THE AVERAGE SALARY FOR THE TEN MONTHS IMMEDIATELY ITA NO. 3713 /DEL /201 6 DHARAM JEET DAHIYA 6 PRECEDING THE MONTH IN WHICH ANY SUCH EVENT OCCURS SUBJECT TO SUCH LIMIT AS THE CENTRAL GOVERNMENT MAY BY NOTIFICATION IN THE OFFICIAL GAZETTE SPECIFY IN THIS BEHALF HAVING REGARD TO THE LIMIT APPLICABLE IN THIS BEHALF TO THE EMPLOYEES OF THAT GOVERNMENT : .. PROVIDED FURTHER THAT WHERE ANY SU CH GRATUITY OR GRATUITIES WAS OR WERE RECEIVED IN ANY ONE OR MORE EARLIER PREVIOUS YEARS ALSO AND THE WHOLE OR ANY PART OF THE AMOUNT OF SUCH GRATUITY OR GRATUITIES WAS NOT INCLUDED IN THE TOTAL INCOME OF THE ASSESSEE OF SUCH PREVIOUS YEAR OR YEARS THE AM OUNT EXEMPT FROM INCOME - TAX UNDER THIS CLAUSE SHALL NOT EXCEED THE LIMIT SO SPECIFIED AS REDUCED BY THE AMOUNT OR AS THE CASE MAY BE THE AGGREGATE AMOUNT NOT INCLUDED IN THE TOTAL INCOME OF ANY SUCH PREVIOUS YEAR OR YEARS. 5. A CAREFUL PERUSAL OF THE A BOVE PROVISION INDICATES THAT IF A CASE FALLS UNDER CLAUSE (I) OF SECTION 10(10) THE ENTIRE AMOUNT OF DEATH - CUM - RETIREMENT GRATUITY BECOMES EXEMPT. AU CONTRAIRE IF A CASE FALLS UNDER SUB - CLAUSE (III) OF SECTION 10(10) THEN THE EXEMPTION IS LIMITED TO THE AMOUNT AS THE CENTRAL GOVERNMENT MAY NOTIFY IN OFFICIAL GAZETTE. IT IS AN ACCEPTED POSITION THAT THE NOTIFICATION U/S 10(10)(III) ISSUED ON 24.5.2010 RAISED THE CEILING OF EXEMPTION FROM RS.3 50 000/ - TO RS.10 LAC. SINCE THE ORIGINAL AMOUNT WAS RECEI VED BY THE ASSESSEE DURING THE CURRENCY OF AN EARLIER YEAR ON HIS RETIREMENT THE EXEMPTION LIMIT PREVALENT AT THAT TIME AT RS.3 50 000/ - WAS USED BY THE ASSESSEE. IT IS NOBODY S CASE THAT THE EXTENDED LIMIT OF EXEMPTION CAN BE APPLIED TO THE ASSESSEE BE CAUSE OF HIS RETIREMENT WHICH TOOK PLACE MUCH BEFORE THE CUT - OFF DATE. TO BE MORE SPECIFIC THE QUESTION IS AS TO ITA NO. 3713 /DEL /201 6 DHARAM JEET DAHIYA 7 WHETHER THE EXTANT CASE FALLS UNDER CLAUSE (I) OR CLAUSE (III) OF SECTION 10(10). IF A CASE DOES NOT FALL UNDER CLAUSE (I) IT WILL AUTOMATIC ALLY GO TO CLAUSE (III). ON A SPECIFIC QUERY FROM THE BENCH THE LD. AR SUBMITTED THAT THE CASE OF THE ASSESSEE SHOULD BE CONSIDERED UNDER SUB - CLAUSE (I) OF SECTION 10(10) AS A HOLDER OF CIVIL POST UNDER A STATE. IN ORDER TO CONSTRUE ANY PERSON AS A HOL DER OF CIVIL POST UNDER A STATE TWO REQUIREMENTS MUST BE FULFILLED VIZ. FIRST THAT THE EMPLOYEE SHOULD BE HOLDING A CIVIL POST AND SECOND SUCH CIVIL POST MUST BE UNDER A STATE. 6. THE FIRST CONDITION IS THAT THE EMPLOYEE SHOULD BE HOLDING A CIVIL POS T. 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 O RDER 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 PEN SION 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 OT HER 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 P RESIDENT ON 2 ND APRIL ITA NO. 3713 /DEL /201 6 DHARAM JEET DAHIYA 8 1970. UNDER THIS ACT OF PARLIAMENT TWO INDEPENDENT AGRICULTURAL UNIVERSITIES IN PLACE OF THE HITHERTO PUNJAB AGRICULTURAL UNIVERSITY WERE ESTABLISHED. SECTION 5 OF THIS ACT SETS OUT THE NAME OF CCSU AS THE AGRICULTURAL UNIVERSITY TO FUNCTION WITHIN THE TERRITORIES OF STATE OF HARYANA. THIS PROVES THAT THE CCSU WAS ESTABLISHED BY AN ACT OF PARLIAMENT. PAGE 29 OF THE PAPER BOOK IS A DOCUMENT WHICH SHOWS THAT THE ASSESSEE IS A STATE UNIVERSITY COVERED UNDER UNIVERSITY GRANTS COMMIS SION (UGC). IT IS UNDISPUTED THAT THE ENTIRE FUNDING OF THE CCSU IS DONE BY THE STATE GOVERNMENT. PAGE 25 IS A COPY OF NOTIFICATION ISSUED BY THE HARYANA GOVERNMENT INCREASING THE MAXIMUM LIMIT OF DEATH - CUM - RETIREMENT GRATUITY AT RS.10 LAC UNDER WHICH T HE ASSESSEE HAS RECEIVED THE ARREARS OF RETIREMENT GRATUITY UNDER THIS SCHEME ONLY. THE ABOVE FACTS AMPLY DEMONSTRATE THAT CCSU IS COVERED UNDER THE EXPRESSION STATE. THIS IS FURTHER CORROBORATED FROM ARTICLE 12 OF THE CONSTITUTION OF INDIA WHICH STATES THAT: IN THIS PART UNLESS THE CONTEXT OTHERWISE REQUIRES THE STATE INCLUDES THE GOVERNMENT AND PARLIAMENT OF INDIA AND THE GOVERNMENT AND THE LEGISLATURE OF EACH OF THE STATES EITHER LOCAL OR OTHER AUTHORITIES WITHIN THE TERRITORY OF INDIA OR UNDER T HE CONTROL OF THE GOVERNMENT OF INDIA. THE EXPRESSION OTHER AUTHORITIES HAS BEEN INTERPRETED IN UMESH V. SINGH A 1967 PAT. 3(9) F.B. AS INCLUDING: A BOARD A UNIVERSITY THE CHIEF JUSTICE OF A HIGH COURT HAVING THE POWER TO ISSUE RULES BYLAWS OR REGU LATIONS HAVING THE FORCE OF LAW. THE ABOVE DISCUSSION MANIFESTS THAT CCSU IS COVERED WITHIN THE MEANING OF STATE . 8. AS THE ASSESSEE IS FOUND TO BE AN EMPLOYEE HOLDING A CIVIL POST UNDER A STATE IN MY CONSIDERED OPINION ITA NO. 3713 /DEL /201 6 DHARAM JEET DAHIYA 9 THE PROVISIONS OF SECTION 10( 10)(I) ARE FULLY ATTRACTED IN THIS CASE ENTITLING HIM TO EXEMPTION FOR THE AMOUNT UNDER CONSIDERATION. ONCE A CASE FALLS UNDER CLAUSE (I) OF SECTION 10(10) THE SAME CANNOT BE BROUGHT WITHIN THE PURVIEW OF CLAUSE (III) OF SECTION 10(10). I THEREFORE HOL D THAT THE ASSESSEE IS ENTITLED TO EXEMPTION U/S 10(10)(I) IN RESPECT OF GRATUITY AMOUNT RECEIVED IN TOTAL UPTO RS.10 LAC WHICH COVERS A SUM OF RS.6 50 000/ - RECEIVED DURING THE YEAR. OVERTURNING THE IMPUGNED ORDER ON THIS SCORE I ALLOW EXEMPTION U/S 10 (10)(I) TO THE ARREARS OF GRATUITY RECEIVED BY THE ASSESSEE AT RS.6 50 000/ - DURING THE INSTANT YEAR. 9. AS REGARDS THE SECOND AMOUNT OF RS.1 88 720/ - RECEIVED BY THE ASSESSEE DURING THE YEAR TOWARDS THE ARREARS OF LEAVE ENCASHMENT IT IS NOTICED THAT THE ASSESSEE CLAIMED EXEMPTION U/S 10(10AA)(I) WHICH WAS REFUSED BY THE AO BY HOLDING THE CASE TO BE COVERED UNDER SUB - CLAUSE (II) OF SECTION 10(10AA). THE LD. CIT(A) AFFIRMED THE VIEW TAKEN BY THE AO ON THIS POINT THEREBY DENYING THE BENEFIT OF EXEMPTION IN RESPECT OF THE ARREARS OF LEAVE ENCASHMENT RECEIVED DURING THE YEAR. 10. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE LD. AR SUBMITTED THAT THERE IS NOT MUCH DIFFERENCE IN THE LANGUAGE OF SECTION 10(10)(I) AND 10(1 0AA)(I) AND THE VIEW TAKEN IN RESPECT OF ARREARS OF GRATUITY U/S 10(10) SHOULD BE FOLLOWED FOR ARREARS OF LEAVE ENCASHMENT U/S 10(10AA). THE LD. DR SUPPORTED THIS PROPOSITION. AS BOTH THE SIDES ARE CONSENSUS AD IDEM ON THE POSITION THAT THE VIEW TAKEN IN T HE CONTEXT OF SECTION 10(10) AS APPLICABLE TO LEAVE GRATUITY BE FOLLOWED HERE IN THE ITA NO. 3713 /DEL /201 6 DHARAM JEET DAHIYA 10 CONTEXT OF SECTION 10(10AA) IN THE CONTEXT OF LEAVE ENCASHMENT I AM DESISTING FROM INDEPENDENTLY EXAMINING THE LATER PROVISION. IN VIEW OF THE FACT THAT I HAVE HELD THE A SSESSEE TO BE ENTITLED TO EXEMPTION U/S 10(10)(I) IN RESPECT OF ARREARS OF GRATUITY FOLLOWING THE SAME I EXTEND THE BENEFIT OF E XEMPTION U/S 10(10AA)(I) IN RESPECT OF ARREARS OF LEAVE ENCASHMENT. THIS GROUND IS ALLOWED. 8 . SINCE THE FACTS OF THE ASSESS EE S CASE ARE IDENTICAL TO THE FACTS INVOLVED IN THE AFORESAID REFERRED TO CASE OF SH. RAM KANWAR RANA. SO RESPECTFULLY FOLLOWING THE ORDER DATED 16.06.2016 IN THE CASE OF RAM KANWAR RANA VS ITO (SUPRA) THE IMPUGNED ORDER IS SET ASIDE AND THE AO IS DIREC TED TO ALLOW THE CLAIM OF THE ASSESSEE ON ACCOUNT OF GRATUITY & LEAVE ENCASHMENT. ACCORDINGLY THE ADDITIONS MADE BY THE AO AND SUSTAINED BY THE LD. CIT(A) ARE DELETED. 9 . IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . (ORDER PRON OUNCED IN THE COURT ON 26 /10 /2016) SD/ - (N. K. SAINI) ACCOUNTANT MEMBER DAT ED: 26 /10 /2016 *SUBODH* COPY FORWARDED TO: 1. APPELL ANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR