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Monday, September 21, 2015

VS RAJAMANI



Dear Editor,

Mr.C.H.Mahadevan (one of the frequent contributors of essential and useful details to the case Managers) has raised a valid point whether payments made by LIC without details is complete compliance of SC Order for IR.

LIC while making the payments has to debit some Account - say Pension, or Arrears of Pension, or Miscellaneous Account etc.   That is the botheration of LIC.

If you see the Definition of "Income" u/s 2 of Income Tax Act 1961-2015, (sub section 24), it can be salary (pension),profit, dividend,interest,rent, agricultural income, winning from horse races or lottery,grant etc etc.

The recipient of the payment must know under which category the payment has been made.  We presume that the payment is towards pension but presumption in this regard is not accepted by law.   There has to be categorical evidence or documents.

Secondly Sec 89(1) of Income Tax Act enables the assessee (the pensioner who has received the payment) to apportion the payment (income) received to the current year or to different earlier assessment years. In this respect also LIC has to furnish the details of payments with calculations.
LIC may come out with the plea that the details will be given later.   Unless the details are furnished, it is not possible to verify whether the payments made are according to the SC order.

Our case managers may bring these to the notice of SC and also point out that still many pensioners have not received the payments (though the ORDER for INTERIM RELIEF is "in REM"

v.s.rajamani