RAJIV GROVER,HARYANA vs. ACIT CIRCLE 71(1), NEW DELHI

These three appeals by the same assessee have been preferred against the common order of the CIT(A) - 21, New Delhi, dated 28.06.2018, who has decided the appeals vide a consolidated order pertaining to A.Ys 2013-14 to 2015-16.

The first grievance of the assessee relates to denial of exemption of disability pension received from Armed Forces, Ministry of Defence u/s 10(10A)(i) of the Income-tax Act, 1961 [hereinafter referred to as 'The Act'].

Briefly stated, the facts of the case are that the appellant did not claim the exemption of disability pension in his return of income but made the said claim by filing a rectification application to DCIT, CPC, Bangalore u/s 154 of the Act. The said application u/s 154 of the Act was rejected by the CPC stating that fresh claim for change of income is not allowable u/s 154 of the Act as the same is not a mistake apparent from record.

The assessee carried the matter before the ld. CIT(A).

The ld. CIT(A) admitted the claim but denied benefit of exemption of disability pension holding that as per the corrigendum PPO, the assessee was entitled for the said exemption in all the afore stated cases only till Assessment Year 2011-12 and no exemption is to be given to the assessee for Assessment Years 2013-14 to 2015-16.

Before us, the ld. counsel for the assessee furnished a certificate from the office of the Controller of Defence Accounts [Pension], Allahabad and pointed out that the Corrigendum PPO has now been extended perpetually.

Per contra, the ld. DR referred to the Circular No. 3 of 2019 by the CBDT dated 24.06.2019 by which the Board has explained that Income tax exemption would be limited only to such disabled Armed Forces Personnel who are invalidated out of service due to disability attributable to or aggravated by military service condition or to even those who retire after full service with some disability.

Since the extension of the PPO Corrigendum has been furnished for the first time before us, which goes to the root of the matter, in our considered opinion, this needs verification in the light of CBDT Circular referred to hereinabove. The Assessing Officer is directed to consider the claim of exemption as per PPO Corrigendum furnished by the assessee in light of the CBDT Circular No. 3 of 2019 dated 24.06.2019 after affording reasonable and sufficient opportunity of being heard to the assessee.

In the result, all the three appeals of the assessee in ITA Nos.