2007 (7) TMI 282

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..... in language of the statute, he has to be granted both those benefits. - there is no prohibition to the twin benefits in respect of the amount received under the voluntary retirement scheme - relief contemplated u/s 89(1) is aimed to mitigate the hardship that may be caused on account of the high incidence of tax due to progressive increase in tax rates and thus held that the benefit under sections .....

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..... spect of the compensation received under the voluntary retirement scheme?" 2. The issue relates to the assessment year 2001-2002. The assessee was an employee of Canara Bank. During the previous year relevant to the assessment year 2001-2002, the assessee retired from service from the bank under the voluntary retirement scheme. On retirement, the assessee received from the employer-bank sever .....

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..... ls), which appeal was allowed by the Commissioner of Income-tax (Appeals). Questioning the correctness of the order of the Commissioner of Income-tax (Appeals), the Revenue preferred further appeal before the Income-tax Appellate Tribunal and the Tribunal dismissed the appeal preferred by the Revenue. Aggrieved by the order of the Income-tax Appellate Tribunal, the Revenue filed the present appeal .....

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..... (1). Then, the assessee would have to pay more amount by way of tax. Section 89(1) provides, where an assessee is in receipt of a sum in the nature of salary, being paid in any financial year of salary for more than twelve months or a payment which under the provisions of clause (3) of section 17 is a profit in lieu of salary, his income is assessed at a higher rate than that at which it would oth .....

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..... while in other provisions, twin or double benefits has been specifically prohibited. There is no prohibition to the twin benefits in respect of the amount received under the voluntary retirement scheme. The relief contemplated under section 89(1) of the Act is aimed to mitigate the hardship that may be caused on account of the high incidence of tax due to progressive increase in tax rates and thu .....

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