9911796707
TMI Blog1996 (10) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... ion dated July 23, 1992. The total amount accruing to the petitioner in respect of the voluntary retirement benefits was Rs. 3,98,336.70 out of which a sum of Rs. 84,000 was deducted as income-tax and the balance amount of Rs. 3,14,336.70 was paid to him. The petitioner claims refund of Rs. 84,000 on the ground that, vide notification dated April 1, 1992, issued by the Government a new clause in section 10 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), was incorporated, namely, clause (10C) which provides exemption from income-tax up to Rs. 5 lakhs payable to an employee as per Voluntary Retirement Scheme. The petitioner, it is contended, is not liable to pay income-tax as the total benefit accruing to him is less than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, Government of India, was filed by the respondents and the same was taken on record. The Government took the plea that the benefit of exemption under section 10(10C) of the Act was available only if an employee had taken voluntary retirement under the Voluntary Retirement Scheme approved by the Chief Commissioner of Income-tax and the petitioner having taken such retirement prior to the date of approval of the scheme was not entitled to get the benefit of the above-said provision. At this point it may be relevant to reproduce the provisions of section 10(10C) of the Act which reads as follows : "(10C) any amount received by an employee of--- (i) a public sector company; or (ii) any other company; or (iii) an authority established ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to any other assessment year." The reading of this provision will clearly indicate that the Voluntary Retirement Scheme under which the petitioner sought retirement has to be approved by the Chief Commissioner or, as the case may be, Director-General in this behalf. In the present case, the admitted facts are that the petitioner took the voluntary retirement with effect from July 25, 1992. The respondent-company applied for approval of the scheme in November, 1993, and the same was approved by the Chief Commissioner vide letter dated November 18, 1993, which will be clearly indicated from the letter dated June 21, 1996, as referred to above. Learned counsel for the petitioner has vehemently argued that the petitioner shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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