2011 (5) TMI 974 - AT - Income Tax

ITAT upholds exemption under section 10(10C) leading to Revenue's appeal dismissal.

The ITAT Ahmedabad dismissed the Revenue's appeal against the deletion of an addition of Rs. 5,00,000 u/s 10(10C) of the Income Tax Act by the ... - Issues involved: Revenue's appeal against the order of Commissioner of Income tax (Appeals)-XXI, Ahmedabad regarding the deletion of addition u/s 10(10C) of the Income Tax Act for the assessment year 2008-09.Summary:The Revenue appealed against the deletion of an addition of Rs. 5,00,000 u/s 10(10C) of the Income Tax Act by the Commissioner of Income tax (Appeals)-XXI, Ahmedabad. The assessee, an employee of State Bank of India, had claimed exemption u/s 10(10C) for opting for Early Retirement. The Assessing Officer disallowed the claim, but the Ld. CIT(A) deleted the addition based on the decision of ITAT Ahmedabad Bench in a similar case. The Ld. CIT(A) observed that the ITAT had allowed exemption u/s 10(10C) in cases involving OERS schemes, similar to the one in question. The Ld. CIT(A) upheld the assessee's claim following the ITAT's decision, leading to the dismissal of the Revenue's appeal.In conclusion, the Revenue's appeal against the deletion of the addition u/s 10(10C) was dismissed by the ITAT Ahmedabad, upholding the decision of the Ld. CIT(A) based on the precedent set by the ITAT in a similar case involving exemption for OERS schemes.