9911796707
TMI Blog2012 (8) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... the Rules have been complied with or not, as per the parity of reasoning laid down by aforesaid decision. Matter restored back to file of AO - ITA No. 12/PN/12 - - - Dated:- 26-6-2012 - SHRI SHAILENDRA KUMAR YADAV, AND SHRI G.S. PANNU, JJ. Appellant by: Shri M K Kulkarni Respondent by: Shri Alok Mishra ORDER PER G.S. PANNU, A.M.: This appeal by the assessee is directed against the order of the Commissioner of Income-tax (Appeals)-III, Pune dated 15.9.2011 which, in turn, has arisen from the order passed by the Assessing Officer under section 143(3) read with section 147 of the Income-tax Act, 1961, (in short the Act ), pertaining to the assessment year 2007-08. 2. In this appeal, the solitary issue raised by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee that the income of Rs 5,00,000/- received under the Exit Option Scheme floated by the State Bank of India was eligible for exemption under section 10(10C) of the Act. 4. Pertinently, the point made out by the Income-tax authorities is that the relevant guidelines prescribed under Rule 2BA of the Rules, which have been reproduced by the Commissioner of Income-tax (Appeals) in para 5 of his impugned order, are not complied with in-toto by the instant scheme of voluntary retirement floated by the State Bank of India. In particular, it is asserted by the Revenue that Guideline No. (iii) to the effect that the voluntary 3 retirement scheme should be drawn to result in overall reduction in the existing strength of the employees, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, proceed on the basis that these guidelines also will have to be fulfilled. The rule, however, will have to be read bearing in mind the object of section 10(10C) itself. Under the rules a scheme framed must be in accordance with the requirements as set out therein. The scheme, therefore, must ether expressly or impliedly comply with the requirements. Merely because the scheme may not expressly set out that the posts will not be filled in cannot result in the scheme not being a scheme falling under section 10(10C) read with rule 2BA of the Rules, bearing in mind the procedural nature of the rules. It will have to be read in harmonious construction with the substantive provisions of the Act so as not to render it ultra vires the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence taken on record under section 260A(7) would show that none of these posts from the day the scheme came into force till 2008 has been filled in. In other words the fourth requirement has also been satisfied. In so far as the fifth requirement is concerned, the Tribunal has already answered the issue and that finding of fact is not in issue before s. even otherwise considering that the RBI is a statutory body created under an Act there is no other company or concern belonging to the same management. The fifth requirement has also been satisfied. The sixth requirement has also been satisfied as in the instant case what is offered is two months salary for each completed year of service. Thus the scheme expressly or impliedly satisf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal, which showed that none of the posts which had become surplus 5 were filled up till such time. Therefore, on this aspect also, the Hon ble High court appreciated the factual scenario resulting on account of the implementation of the voluntary scheme. However, in the present case, the Income-tax authorities have shut out the case of the assessee primarily on the face of the scheme itself without appreciating the factual position. 6. In this background, we find that the assessee has been all along contending that the facts of the instant scheme are exactly similar to the scheme considered in the case of Koodathil Kallyatan Ambujakshan (supra), the only exception being that in the instant case the scheme related to the employee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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