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TMI Blog2013 (10) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... im, which is under a different claim under Section 35DDA of the Act - Rule 2BA of the Rules is attracted and applicable only to a circumstance, where the benefit of Section 10(10C) of the Act is sought for and not in a situation where the provisions of section 35DDA of the Act is called in aid – Decided against the Revenue. - ITA No.48 of 2013 - - - Dated:- 11-7-2013 - D V Shylendra Kumar And B S Indrakala, JJ. For the Appellant : Sri K V Aravind, Standing Counsel For the Respondent : None JUDGEMENT:- This appeal by the revenue under Section 260-A of the Income Tax Act, 1961 [for short the Act ] is directed against the order dated 21.09.2012 passed by the Income Tax Appellate Tribunal, Bangalore Bench A in ITA No.890/Ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture disallowed this amount and in coming to this conclusion the Commissioner was influenced by the factor that the voluntary retirement scheme framed by the assessee for permitting some of the employees to retire was not in normal course, but to get rid of some frustrated and de-motivated officers from the employment of the Bank and that even applying the provisions of Section 35DDA also the voluntary retirement scheme being not in consonance with Rule 2BA of the Income Tax Rules (for short the Rules ) and thought it is only in the nature of capital expenditure and therefore, directed the assessing officer to withdraw the deduction and finalize the assessment on such premise. The assessee being aggrieved had carried the matter to the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 10(10C). Section 10(10C), Section 35DDA and Rule 2BA reads as follows :- Section 10(10C) : any amount received (or receivable) by an employee of (i) a public sector company; or (ii) any other company; or (iii) an authority established under a Central, State or Provincial Act; or (iv) a local (authority; or) (v) a co-operative society; or (vi) a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956); or (vii) an Indian Institute of Technology within the meaning of clause (g) of section 3 of the Institutes of Tec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gains of the business for that previous year, and the balance shall be deducted in equal instalments for each of the four immediately succeeding previous years; (2) ..XXXXXXXXX .. (3) ..XXXXXXXXX .. (4) ..XXXXXXXXX .. (5) ..XXXXXXXXX .. (6) No deduction shall be allowed in respect of the expenditure mentioned in sub-section (1) under any other provision of this Act. (Guidelines for the purposes of section 10(10C) Rule 2BA: The amount received by an employee of (i) a public sector company; or (ii) any other company; or (iii) an authority established under a Central, State or Provincial Act; or (iv) a local (authority; or) (v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rative society;) (iii) the scheme of voluntary retirement (or voluntary separation) has been drawn to result in overall reduction in the existing strength of the employees; (iv) the vacancy caused by the voluntary retirement (or voluntary separation) is not to be filled up; (v) the retiring employee of a company shall not be employed in another company or concern belonging to the same management; (vi) the amount receivable on account of voluntary retirement (or voluntary separation) of the employee does not exceed the amount equivalent to (three months) salary for each completed year of service or salary at the time of retirement multiplied by the balance months of service left before the date of his reti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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