9911796707
TMI Blog2001 (4) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... at source. The learned lawyer for the writ petitioner contends that the scheme under which the members of writ petitioner No. 1 voluntarily retired do come within the purview of section 10(10C) of the Income-tax Act, 1961, read with rule 2BA of the Income-tax Rules, 1962. He contends that though the monetary benefits given in terms of the voluntary retirement scheme are being paid quarterly in a year spreading over each and every month in equal proportion. So it was not open for respondent Nos. 2 and 3 to deduct income-tax at source for payment to the Income-tax Department. He has taken me through various terms and conditions of voluntary retirement scheme. According to him, all the eligibility criteria to get exemption are fulfilled. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciple. Therefore, there is no scope for escapement. Having heard the learned lawyers for the parties it appears to me that two points have fallen for consideration of this court, viz., (1) whether having regard to the terms and conditions of the voluntary retirement scheme the writ petitioners are entitled to exemption under section 10(10C) and rule 2BA, and (2) whether the terms and conditions in the scheme fulfilled the eligibility criteria as mentioned in rule 2BA. The citation of the learned lawyer for the Revenue being the case referred to above needs to be dealt with at the first instance since by the aforesaid judgment it has been held that the compensation received at or in connection with the termination of employment by its em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Technology Act, 1961 (59 of 1961); or (viii) such institute of management as the Central Government may, by notification in the Official Gazette, specify in this behalf, at the time of his voluntary retirement in accordance with any scheme or schemes of voluntary retirement, to the extent such amount does not exceed five lakh rupees: Provided that the schemes of the said companies or authorities or societies or Universities or the Institutes referred to in sub-clauses (vii) and (viii), as the case may be, governing the payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule 2BA which has been framed in terms of the aforesaid 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) 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 Technology Act, 1961, (59 of 1961); or (viii) such institute of management as the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule 2 of Part A of the Fourth Schedule." I have gone through the scheme concerned. In my opinion, the scheme does not conform to the conditions laid down in the aforesaid section as well as the rule. Firstly, as I have said the section does not contemplate monthly payment and further it is not clear to me whether the benefit which is being or might be received by way of monthly payment does exceed the amount calculated at the rate of three months' salary for each completed years of service. In the petition it has not been stated specifically that the benefit being received by the employees does not exceed the amount as mentioned in the aforesaid rule. Moreover, in terms of the scheme both the employees and the employer have agreed to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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