62. Inserted by the IT (Amdt.) Rules, 1972, w.r.e.f. 1-4-1971.
††††† Relief under section 89(1) is to be given in the assessment in which the extra payment by way of arrears, advance, etc., is taxed - Circular No. 331, dated 22-3-1982. Relief would also be admissible on encashment of leave salary while in service - Circular No. 431, dated 12-9-1985.
††††† For formula for computation of relief on gratuity, see† Circular No. 9-D(LIII-6), dated 17-3-1966 as modified by Circular No. 14-D(LIII-7), dated 19-4-1966. Where the Supreme Court awarded lump sum compensation in lieu of back wages and future wages in an industrial dispute with a direction that the lump sum should be spread over the back period, relief under section 89(1) is admissible and it must be quantified before making payment - Sundaram Motors (P.) Ltd. v. Ameerjan  152 ITR 64 (SC). Relief is admissible on arrears of salary paid under orders of court - Sant Raj v. O.P. Singla  163 ITR 588 (SC), K.C. Joshi v. Union of India  163 ITR 597 (SC). Where back wages are paid to assessee pursuant to striking down of termination order by court, relief is admissible - Satyapal v. Wool & Woollen Export Promotion Council  169 ITR 507 (Bom.). Compensation received consequent to resignation is also entitled to relief - CIT v. J. Visalakshi  206 ITR 531 (Mad.). Assessee is eligible to claim simultaneous benefit under section 10(10C) as well as section 89(1) in respect of compensation received under voluntary retirement scheme - CIT v. G.V. Venugopal  144 Taxman 784/273 ITR 307 (Mad.). Amount received by assessee on voluntary retirement in excess of Rs. 5 lakhs, which is exempt under section 10(10C), would be eligible for relief under section 89 as it is profit in lieu of salary within meaning of section 17(3)(i) - CIT v. P. Surendra Prabhu  149 Taxman 82/279 ITR 402 (Kar.). For details, see Taxmannís Master Guide to Income-tax Rules.