2007 (10) TMI 362

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....n assessee from his employer in connection with the termination of his employment. Cessation of employment because of voluntary retirement is also the termination of employment and the amount of the compensation received by the assessee from the employer in connection thereto is covered by 'pro fits in lieu of salary'. 6. Before the Income-tax Appellate Tribunal the whole emphasis of the Revenue was founded on letter of the Central Board of Direct Taxes dated April 23, 2001, which indicated that the amount up to Rs. 5 lakhs received under voluntary retirement scheme was exempt as per the provisions of section 10(10C) and after allowing this exemption, any balance amount was not eligible for relief under section 89. The Revenue also relie....

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.... be denied merely because an amount up to Rs. 5 lakhs received on voluntary retirement is exempted under section 10(10C). Section 89 of the Income-tax Act operates in a different field and the relief given to an assessee under section 89 is for different purpose and cannot be mixed up with the exemption given under section 10(10C). Cause (viii) of section 10(10C), which provides that no exemption there under shall be allowed in relation to any other assessment year has nothing to do with the relief under section 89, which is distinct and independent. 8. Our attention was also invited to section 35DDA of the Income-tax Act. We are afraid, that the said section even remotely has no application to the assessee, who is not the employer. This....