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TMI Blog2012 (7) TMI 938X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 29/09/2009 were that the AO had initiated the proceedings to verify the claim of exemption u/s.10(10C) of the IT Act in respect of "Exit Option Scheme" of the State Bank of India. It was stated that the State Bank of India vide Circular No.CDO/P&HRD-PM/8/2005-06 dated 29.04.2005 had announced Staff Supervisory Exit Option Scheme for the officers of the bank who feel frustrated and de-motivated due to lack of career prospects in the bank. The scheme was introduced for officers in MMGS III and above only. Officers who were above 50 years and below 58 years of age as on the date of application and had not been promoted to the next higher grade/scale within four chances and were also superseded by their juniors were eligible. The AO was o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur notice that in respect of the said Scheme of the State Bank of India, a view has been taken by a Respected Coordinate Bench "C" in the case of ITO vs. Shri Nalin Natwarlal Shah, bearing ITA No.122/Ahd/2010 for A.Y. 2007-08 vide order dated 29.6.12, wherein it was held as under:- "3. Brief facts of the case are that assessee is an employee of S.B.I. He opted voluntarily retirement from SBI under exit option scheme of SBI on 01.05.2006. The assessee claimed exemption of ₹ 5,00,000/- u/s 10(10C) of the Act. The A.O. was of the view that this exemption u/s 10(10C) was available only if the scheme of voluntary retirement is in accordance with the requirement laid down in Rule 2BA of Income Tax Act, 1962. Since, according to him the exi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR 162 and Hon'ble Karnataka High Court in the case of CIT & Others vs. P Surendra Prabhu 279 ITR 402 and Kerala High Court in the case of State Bank of Travancore vs. CBDT 282 ITR 587. The Learned Assessing Officer disallowed the deduction to the assessee observing that all the decisions relied upon by the assessee are of non-jurisdictional High Courts and there is no direct judgment of Hon'ble Gujarat High Court. In appeal, the Learned Commissioner of Income-tax (Appeals) following the decisions of the High Courts relied upon by the assessee allowed the deduction to the assessee. I find that the Hon'ble Madras High Court in the case of CIT vs. G V Vciuigopal 273 1TR 307 held as under: "Notions of equity do not apply in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fits, which he has claimed for. Apart from the above, it is well-settled that if two reasonable interpretations of taxing statutes are possible, the one in favour of the assessee should be accepted. -CIT vs. Naga Hills Tea Co. Ltd. 1973 CTR (SC) 329 : AIR 1973 SC 2524 applied." 8 Further, in my considered opinion, if there is a decision on an issue of any High Court and there is no contrary decision of any other High Court, then in absence of the same, even if there is no decision on the issue of the jurisdictional High Court, the decision rendered by the other High Courts should be respectfully followed by the courts below the High Court. Therefore, following the decision of Hon'ble Madras High Court, I do not find any good reas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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