2012 (8) TMI 1023 - AT - Income Tax

Eligibility for exemption u/s 10(10C) - employees opted for Exit option Scheme declared by SBI - Held that - Exemption allowed as relying on CIT Vs. Koodathil Kallyatan Ambujakshan 2008 (7) TMI 259 - BOMBAY HIGH COURT .

Summary

Issues: Revenue's challenge to CIT(A) order for A.Y. 2007-08 regarding exemption u/s 10(10C) for employee's Voluntary Retirement Ex-gratia amount.

Analysis:
1. Issue 1: Challenge to CIT(A) Order
- The revenue challenged the CIT(A) order dated 16.6.2011 for the A.Y. 2007-08, regarding the exemption claimed under section 10(10C) by an employee who opted for Voluntary Retirement under the Exit Option Scheme declared by the State Bank of India. The revenue contended that the employees opting for the scheme were not eligible for exemption u/s 10(10C) as per the Board's directive.

2. Issue 2: Exemption u/s 10(10C) Rejection by AO
- The Assessing Officer (A.O.) rejected the claim of exemption u/s 10(10C) for the Ex-gratia amount received by the assessee upon Voluntary Retirement, citing a CBDT Circular. The A.O. denied the claim, leading the assessee to appeal before the CIT(A) challenging the assessment order.

3. Issue 3: CIT(A) Decision and Legal Precedents
- The CIT(A), relying on the decision in the case of CIT Vs. Koodathil Kallyatan Ambujakshan, allowed the claim of the assessee for exemption u/s 10(10C). Additionally, the CIT(A) found support for the assessee's case in decisions by co-ordinate benches of the ITAT in various cases, confirming the eligibility of the assessee for the claimed exemption.

4. Issue 4: Confirmation of CIT(A) Order
- The Appellate Tribunal found no reason to interfere with the CIT(A) order and confirmed the decision in favor of the assessee. Consequently, the Revenue's appeal was dismissed, upholding the exemption granted to the assessee under section 10(10C) for the Ex-gratia amount received upon Voluntary Retirement from the State Bank of India.

5. Conclusion:
- The judgment pronounced on 29th August 2012 by the Appellate Tribunal ITAT Pune, with members Shri R.S. Padvekar and Shri R.K. Panda, upheld the CIT(A) decision allowing exemption u/s 10(10C) for the assessee's Voluntary Retirement Ex-gratia amount, dismissing the Revenue's appeal challenging the same. The legal precedents and the CIT(A)'s interpretation of the relevant provisions supported the assessee's claim, leading to the confirmation of the exemption.