During the year, a sum of Rs. 20 lakhs was paid by employer of assessee to LIC to purchase an annuity on behalf of the assessee.  The Assessing Officer held that the amount paid to LIC was formed in the nature of an annuity, hence taxable as a perquisite under section 17(2)(v) of the Act and allowed exemption under section 10(10CC) to the extent of Rs 5.87 lakhs. CIT A) affirmed the order of the Assessing Officer. On appeal, the Tribunal held that the said sum paid by the employer to LIC to purchase an annuity on his behalf could not be taxed for the relevant assessment year as it did not represent any amount received, due, or vested in him during that year. Annuity was structured to be paid to the assessee only after four years, in the form of monthly instalments from LIC. For such a payment to be taxed in the hands of the employee, it was essential, as per section 15, that the amount was either due, paid, or allowed to the employee. A contingent benefit or a non-vested future entitlement could not be brought to tax in the year of payment by the employer unless the employee acquires a vested right in the amount. Since annuity payments commenced only after four years and assessee had in fact offered to tax annuity income received from LIC on accrual/receipt basis in relevant assessment year under head ‘Income from Salary’, taxing employer’s payment of Rs. 20 lakhs in relevant assessment year would amount to taxing same amount twice-once at stage of employer’s contribution and again at time of annuity receipts-resulting in double taxation, which was impermissible in law. Therefore, the addition of Rs. 20 lakhs made by the Assessing Officer in the hands of the assessee for the relevant assessment year was deleted.  (AY. 2018-19)