Assessee, upon retirement, received an amount from the employer voluntarily, ex-gratia, and out of their sweet will, and without any obligation under any law or a condition.  The AO assessed the said receipt under section 17(3)(iii) of the Act  on the ground that the tax was deducted by the employer. On appeal the Tribunal held that the department also did not challenge the genuineness of the letter issued by the employer stating the payment was voluntary.  Tribunal held that  simply invoking the provisions of the Act and bringing the amount under tax was considered an arbitrary exercise. Hence, the case falls outside the purview of S. 17(3)(iii) of the Act.AO is directed to delete the addition.  (AY. 2018-19)