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Issues involved:
Whether the assessee is entitled for basic exemption of Rs. 5,00,000/- u/s. 10(10C) of the Act from the amount of compensation received on voluntary retirement as an employee of the State Bank of India. In this appeal, the assessee challenged the impugned order of the CIT(A) regarding the entitlement for basic exemption u/s. 10(10C) of the Act from the compensation received on voluntary retirement. The assessee, an employee of the State Bank of India, opted for Voluntary Retirement under the Exit Option Scheme, which offered compensation to employees choosing this option. The assessee's claim for exemption u/s. 10(10C) was initially rejected by the A.O and the Ld CIT(A). The Ld Counsel argued that the issue is supported by the decision of the Hon'ble High Court of Bombay in a specific case, which was also accepted by the CBDT. Additionally, the ITAT Pune Bench ruled in favor of similar assessees in comparable situations. The Board had issued a Circular accepting the High Court's decision. Consequently, the appeal was allowed, directing the A.O to grant the exemption u/s. 10(10C) of the Act. The Ld Counsel contended that the issue was decisively settled in favor of the assessee by the Hon'ble High Court's decision and subsequent Circular issued by the CBDT. The ITAT Pune Bench also ruled in favor of another assessee who opted for Voluntary Retirement under the Exit Option Scheme. The decision highlighted that the assessee's case was similar to those covered by other ITAT benches in various cases. The Ld Counsel correctly pointed out that the Board had acknowledged the High Court's decision and issued a Circular in line with it. Consequently, the appeal was allowed, and the A.O was directed to grant the exemption u/s. 10(10C) of the Act. The order of the CIT(A) was confirmed, and the appeal filed by the assessee was allowed based on the decision of the Hon'ble High Court of Bombay and the Circular issued by the CBDT. The assessee, who opted for Voluntary Retirement under the Exit Option Scheme, was entitled to the exemption u/s. 10(10C) of the Act. The decision was in line with previous rulings by the ITAT and the acceptance of the High Court's decision by the Board.
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