The case ITA No. 5304/DEL/2019 involves the appellant Rajiv Grover from Gurgaon, contesting the order passed by the respondent ACIT, Circle 71(1), New Delhi, for the assessment year 2014-15. The appeal was filed on June 10, 2019, against the order of the CIT(A)-21, New Delhi, dated June 28, 2018. The appellant also filed related appeals for the assessment years 2013-14 and 2015-16.
The appellant, Rajiv Grover, filed the appeal to contest the denial of exemption on the disability pension received from the Armed Forces, Ministry of Defence under Section 10(10A)(i) of the Income-tax Act, 1961. The exemption was denied for the assessment year 2014-15, and the appellant sought rectification under Section 154 of the Act, which was initially rejected by the CPC, Bangalore.
The appeals were heard by the Income Tax Appellate Tribunal (ITAT) Delhi ‘F’ Bench, New Delhi, with Judicial Member Shri Bhavnesh Saini and Accountant Member Shri N.K. Billaiya presiding over the case. The hearing took place on March 4, 2020, and the order was pronounced on March 5, 2020.
The appellant, represented by Shri Manu K. Giri, argued that the disability pension should be exempt under the corrigendum PPO issued by the Controller of Defence Accounts (Pension), Allahabad. The exemption was initially claimed through a rectification application to DCIT, CPC, Bangalore, which was rejected.
The respondent, represented by Shri Sanjay Tripathi, Sr. DR, referred to Circular No. 3 of 2019 issued by the CBDT on June 24, 2019. The circular explained that the income tax exemption for disability pension would be limited to disabled Armed Forces personnel invalidated out of service due to disability attributable to or aggravated by military service or those who retire after full service with some disability.
The ITAT noted that the extension of the PPO corrigendum, which was submitted by the appellant, was crucial to the case and needed verification in light of the CBDT Circular No. 3 of 2019. The tribunal directed the Assessing Officer to verify the claim of exemption as per the corrigendum PPO and the CBDT circular, providing the appellant with a reasonable opportunity to present his case.
The ITAT remanded the case back to the Assessing Officer for verification of the corrigendum PPO and the appellant’s claim of exemption under the relevant CBDT circular. The tribunal allowed the appeal for statistical purposes and dismissed the other grounds as not pressed.
Order pronounced in the open court on March 5, 2020.
Denial of Disability Pension Exemption: Rajiv Grover vs ACIT, Circle 71(1), Delhi, ITA 5304/DEL/2019
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