2010 (11) TMI 125

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....Act, 1961 in time and also filed revised returns pursuant to the intimation under section 143 of the Income-tax Act. The Assessing Officer granted the relief to the petitioners under section 89(1) of the Income-tax Act and did not deal with the exemption under section 10(10C) of the Act. According to the petitioners, as per section 10(10C) of the Income-tax Act, any amount received by the employee on his Voluntary Retirement Scheme not exceeding Rs. 5 lakhs is exempted from income-tax. The employees are also entitled to take the benefits as per section 89 of the Act. As the terminal benefits received by the petitioners upon the voluntary retirement exceeds Rs. 5 lakhs income-tax cannot be levied on the amount of Rs. 5 lakhs as per section 1....

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....s further stated that the petitioners are also not entitled to claim exemption to an extent of Rs. 5 lakhs under section 10(10C) of the Income-tax Act.   4. Mr. S. M. S. Johny Basha, the learned counsel appearing for the petitioners, in all the writ petitions, submitted that initially exemption was not granted under section 10(10C) of the Act and this court has also held in the matter of CIT v. M. Chelladurai [2009] 317 ITR 370 (Mad) that the amount received on voluntary retirement of service by people like the petitioners are not eligible for exemption under section 10(10C) of the Income-tax Act, unless the Voluntary Retirement Scheme confirmed to the guidelines laid down under section 10(10C) and rule 2B(a) and the Voluntary Retir....

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....le one, having regard to the subsequent judgment rendered by the honourable Supreme Court on this aspect, the writ petitions are liable to be allowed.   5. Mr. R. Sathiamoorthy, the learned standing counsel appearing for the respondent submitted that the petitioners filed rectification applications and it is like a review application and unless the errors are apparent on the face of the record, the rectification applications cannot be entertained and while passing the order rejecting the application filed by the petitioners, the assessment order was in accordance with law and the petitioners were not entitled to claim exemption under section 10(10C) of the Income-tax Act and in that context only, applications were rejected as there ....