Tax exemption available to defence personnel invalidated from service due to bodily disability

Aradhya Ghosh Vs DCIT (ITAT Delhi)

ITAT Delhi held that income tax exemption shall be available to the Defence Forces Personnel who have been invalidated from service on account of bodily disability while in service.

Facts- During the course of assessment proceedings, the A.O. noted that the assessee has claimed ‘Disability Pension’ amounting to Rs.8,43,226/- as exempt income in his revised ITR. The Investigation of the submissions and verification with the concerned authorities shows that the assessee Wg. Cdr. Aradhya Ghosh had taken pre-mature retirement from Indian Air Force w.e.f. 01.04.2016 and the disability was not the reason for retirement.

The A.O. noted that since the assessee had taken pre-mature retirement at his own request and was not invalided from service on account of bodily disability attributable to or aggravated by such service, the disability pension amounting to Rs.8,43,226/-shall not be exempt from Income Tax.

Aggrieved by the order of the A.O, the assessee carried the matter in appeal before the Ld. CIT(A), NFAC, Delhi which was confirmed. Being aggrieved, the assessee preferred the present appeal.

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