9911796707
TMI Blog2012 (11) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... .5,00,000/- claimed under Section 10(10C) of the Act which is arbitrary and unjustified. 2. That the ld. CIT(A) has further erred in law as well as on facts in holding that the 'Exit Option Scheme" does not satisfy the conditions laid under Section 10(10C) read with rule 2BA which is incorrect and as such the exemption withdrawn and upheld is wholly unwarranted. 3. That the order of the ld. CIT(A) is erroneous, arbitrary, opposed to law and facts of the case and is, thus untenable." 3. The facts of the case in brief are that the assessee Bikram Jit Passi filed return of income, on 11.08.2008 for the assessment year 2008-09. During the course of assessment proceedings, the AO noted that the assessee had claimed exemption u/s 10(10C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006 under exit option scheme introduced by the bank of India with effect from 7-5- 2005. The assessee received salary and pension amounting to Rs.3,81,894 (including exgratia). On examination of Form No.16 the Assessing Officer noticed that assessee received ex-gratia of Rs.3,07,236 on VRS. He claimed exempt ion under sect ion 10(10C) of the Act. The Assessing Officer disallowed the claim by following circular No. Chief CIT, Baroda letter BRD/Chief CIT/Tech/MICS/10(10C)/2009-10, dated 17-6- 2006. The assessee relied on the decision of Tribunal, Kolkata in the case of Dy. CIT v. Krishna Gopal Saha (2009) 29 DTR (Kol) (TM) (Trib) 385 but the learned Assessing Officer did not agree and made the addition. The learned Commissioner (Appeals) als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Representative and perused the material placed before me. I find that the issue has been considered by the Hon'ble jurisdictional High Court in the case of SAIL DSP VR Employees Association 1998 v. Union of India (supra) in which their Lordships held as under: Section 10(10C) of the Income Tax Act, 1961, uses the expression any amount received by an employee.... At the time of his voluntary retirement in accordance with any scheme or schemes of voluntary retirement.... if a plain literal interpretation of statutory provision produced a manifestly absurd and unjust result, which the legislature could not have intended, the court is supposed to modify the language used by the legislature even to do some violence to it so as to achieve the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C) even if the payment is stretched over a period of years. They have also held that provision of section 10(10C) should be interpreted in a manner beneficial to the optee for voluntary retirement. It may be pointed out that in the above-mentioned case, the employer i.e. SAIL was of the opinion that the employees were not entitled to exemption under section 10(10C) and accordingly, SAIL had been deducting tax at source on the amount paid under their voluntary retirement scheme. The facts are similar in the assesses case, because in the case of the assessee also, the employer believing that the assessee is not entitled to deduction under section 10(10C) has deducted tax at source on the amount paid on voluntary retirement. The facts being id ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court under the identical facts held the assessee, i.e., the retired employee, to be entitled to deduction under section 10(10C). Similar view is taken by Hon'ble Bombay as well as Karnataka High Courts. The decision of Hon'ble jurisdictional High Court is binding upon us and moreover i f two views are possible, while interpreting the provision, a view which is favourable to the assessee has to be adopted. Hon'ble jurisdictional High Court in the above-referred case of SAIL DSP VR Employees Association 1998 v. Union of India (supra) has also held that the provisions of section 10(10C) are to be interpreted liberally in a manner which is beneficial to retired employees in view of the above. I respectfully following the decisions of Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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