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TMI Blog2014 (8) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... he Rules by itself does not provide for any formula for deductions - It only stipulates the conditions on satisfaction of which, the VRS would qualify for the benefit u/s 10(10C) - once the scheme is approved, the occasion to effect deduction of tax at source would arise, if only the benefit of a particular employee exceeds ₹ 5,00,000 - for none of the assessees herein, the benefit under VRS exceeded ₹ 5,00,000 – the deduction (TDS) was not proper - Decided in favour of Assessee. - W.P.Nos.839 of 2000 - - - Dated:- 1-7-2014 - L. Narasimha Reddy And Challa Kodanda Ram,JJ. For the Petitioners : Sri Sriram Krishna Moorthy For the Respondents : Sri S. R. Ashok JUDGMENT (Per LNR,J) These two writ petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submit that Clause (vi) of Rule 2BA of the Rules mandates working out of the VRS benefits and if they exceed the limits stipulated therein, the balance of the amount is to be levied tax and accordingly, deduction, at source was made. Heard Sri Sriram Krishna Moorthy, learned counsel for the petitioners, Sri S.R.Ashok, learned senior Standing Counsel appearing for respondents 1 and 2 and Sri Y.Ratnakar, learned counsel for the 3rd respondent. The 3rd respondent felt that the manpower in its establishments has become economically unviable and accordingly evolved VRS, with the participation of the representatives of the workmen. The gist of the formula for extending the VRS benefits has already been indicated in the preceding paragraphs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heme of voluntary retirement has been drawn to result in overall reduction in the existing strength of the employees of the company or the authority, as the case may be; (iv) the vacancy caused by the voluntary retirement is not to be filed 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 of the employee does not exceed the amount equivalent to one and one-half 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 retirement on superannuation. It is only when VRS satisfies these conditio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/-. It is not in dispute that for none of the petitioners herein, the benefit under VRS exceeded ₹ 5,00,000/-. Therefore, the writ petitions are allowed and it is directed that the 3rd respondent shall refund the amount deducted at source, from the amounts payable to the petitioners, with interest at the rate of 9% per annum, within three months. Since we find that the very deduction was not proper, the 3rd respondent shall be entitled to claim refund of the amount, if any, passed on by it to the Revenue. If any of the petitioners herein have been refunded any amount deducted towards tax from the VRS benefit either by the 3rd respondent or by the Department, they shall not be entitled to be paid any further amount. The misce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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