https://www.taxtmi.com/caselaws?id=75700 The Income-tax Appellate Tribunal, Jaipur Bench, Jaipur allowed deduction of ex gratia payment under the Voluntary Retirement Scheme (VRS) over the exemption in section 10(10C) of the Income-tax Act, 1961. The Tribunal held that VRS amount constitutes compensation for "termination of service" under section 17(3) and relief under section 89(1) applies after reducing the exemption. The Rajasthan High Court ruled that relief under section 89 is admissible on VRS amounts exceeding the exemption under section 10(10C), emphasizing that VRS amounts qualify for relief under section 89 regardless of the exemption, as they are considered "profits in lieu of salary" under section 17(3)(i). en-us Wed, 21 Nov 2007 00:00:00 +0530 Thu, 06 May 2010 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=75700 The Income-tax Appellate Tribunal, Jaipur Bench, Jaipur allowed deduction of ex gratia payment under the Voluntary Retirement Scheme (VRS) over the exemption in section 10(10C) of the Income-tax Act, 1961. The Tribunal held that VRS amount constitutes compensation for "termination of service" under section 17(3) and relief under section 89(1) applies after reducing the exemption. The Rajasthan High Court ruled that relief under section 89 is admissible on VRS amounts exceeding the exemption under section 10(10C), emphasizing that VRS amounts qualify for relief under section 89 regardless of the exemption, as they are considered "profits in lieu of salary" under section 17(3)(i). Case-Laws Income Tax Wed, 21 Nov 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=75700