9911796707
TMI Blog2023 (1) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT(A) has considered the amended provision to Section 10(10C) and Section 89 and further also considered CBDT Circular No. 20/2015 which is w.e.f. 01/04/2010 with insertion of proviso to Section 89, wherein no exemption shall be allowed to the assessee if any relief has been allowed u/s 10(10C) of the |Act for any Assessment Year in respect of the amount received or receivable on voluntarily retirement or termination of service. Considering the above facts that the assessee could not claim relief u/s 10 (10B) at the time of filing of return which has been ultimately resulted in passing the order impugned, in our considered view, if the assessee be given the benefit of exemption u/s 10 (10B) of the Act and no other Exemption under Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c 10(10)C( on account of amendment in Law) 2.1 That on the facts and in law the CIT(A) has erred in disallowing Rs 2,41,874, as the amount had not been received as Salary in advance, but was a lumpsum settlement for the future service, under a Voluntary Separation Scheme, to relieve all the permanent employees of the Company,( severing the employer employee relationship) approved by the Govt, of India 2.2 The Scheme was not voluntary, since there was included a clause that employees who did not opt for PS5 would be retrenched under the Industrial Disputes Act,1947. 2.3 For computation of the onetime settlement, the period of service considered was completed service and left over service. 2.4 Sec 10.(10)C, applies to a sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y any person, whether in the nature of revenue or capital, in connection with the termination or the modification of the terms and conditions of any contract relating to his employment shall be taxable under the head Income from other sources . Consequential amendment has also been made in clause (24) of section 2 of the Income-tax Act. 13.3 Applicability: These amendments takes effect from 1st April, 2019 and will, accordingly, apply in relation to assessment year 2019-20 and subsequent assessment years. 5. Your Honour, the compensation received as ONE TIME SETTLEMENT was taxed in the AY 2016.17.Reading the above explanation to the amendment, the lump sum compensation would be exempt, prior to enactment of the above amendment, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act was issued. The assessment order dated 07/09/2018 came to be passed wherein the Ld. A.O. found that the Assessee s third computation of income claiming relief u/s 89 of the Act to the tune of Rs. 2,41,874/- was found to be in order and further found that the assessee has wrongly claimed relief in the revised ITR to the tune of Rs. 5,64,487/- accordingly, the excess relief claimed u/s 89 of the Act to the tune of Rs. 3,22,613/- has been disallowed. 5. Aggrieved by the assessment order dated 07/09/2018, the assessee has preferred an appeal before the CIT(A) and the Ld.CIT(A) vide order dated 31/07/2020 disallowed Rs. 2,41,874/- claimed u/s 89 (1) of the Act holding that relief could not be sought for arrears of salary or receipt o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Ld. A.O. has once again was of the opinion that there was a mistake in calculating the amount of relief claimed u/s 89 at Rs. 4,80,720/-. The Ld. A.O. of the opinion that the claim of exemption u/s 10(10C) of the Act to the tune of Rs. 5 lacs would not be allowed as the same had not been claimed by way of filing return of income. 9. The assessee furnished yet another computation of income in which the assessee claimed relief u/s 89 of the Act to the tune of R. 2,41,874/-. The said claim of the assessee was found to be in order by the Assessing Officer. Hence, excess relief claimed u/s 89 of the Act to the tune of Rs. 3,22,613/- was disallowed. Accordingly, income of the assessee was assessed at Rs. 38,67,996/- against the returned i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
