G.T.NANAVATI,J. - (1.) THE following question of law has been referred to this Court by the Tribunal under S. 256(1) of the IT Act, 1961 : "Whether, on the facts and in the circumstances of the case, the claim of the assessee for standard deduction on the amount of pension was justified ?"
(2.) DURING the previous year relevant to the asst. year 1977 78, the assessee received Rs. 3,737 by way of salary and arrears of salary and Rs. 7,260 by way of pension. The assessee thus appears to have retired during that year and, therefore, for a part of that year he received salary and for the remaining part he received pension. The assessee claimed a deduction of Rs. 2,110 on the total amount of salary and pension received by him. The ITO granted proportionate standard deduction of Rs. 7,045 (sic) in respect of the salary income but refused to grant any standard deduction on the income received by the assessee by way of pension.
(3.) THE assessee, therefore, filed an appeal to the AAC but the appeal failed.;