TaxTMI 
TaxTMI 
2014 (4) TMI 939
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....ubmitted by the assessee, on merits, the order of the Commissioner of Income Tax (A) should be quashed. 2. The Commissioner of Income-tax(Appeals) erred in confirming the order of the Assessing Officer by holding out that the employer need to state that VRS scheme framed is in compliance to Rule 2BA of the Income Tax Act 1962. In view of the clause by clause compliance submitted by the assessee, on merits, the order of the Commissioner of Income Tax (A) should be quashed. 3. The Commissioner of Income-tax(Appeals) erred in confirming the order of the Assessing Officer by holding out that the scheme is applicable only to certain class of employees and the policy about vacancies caused is not mentioned in the VRS Scheme and hence it is ....
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.... Bank Ltd. and had received compensation of Rs. 6.01 lacs. AO found that out of the said compensation the assessee had claimed exemption u/s.10(10C) of the Act of Rs. 5 lacs. AO asked the assessee as to why the exemption claimed by him should not be disallowed.After considering the submission of the assessee dated 01.03.2013 AO held that New India Cooperative Bank Ltd. i.e. the employer-bank had not complied with the provisions of Rule 2BA of the Income-Tax Rules 1962(Rules), that employees of the said bank were not entitled for exempti -on claimed by them u/s.10(10C) of the Act, that the bank had deducted tax at source on the entire payment made to its employees,that claim made by the assessee was not as per the provisions of law. 2.2 A....
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....yees Association 2.4.We have heard the rival submissions and perused the material before us.We find that the assessee was an employee of New India Co-operative Bank Ltd. and had opted for voluntary retirement,that on his voluntary retirement he received a sum of Rs.6.01 lakhs,that claim made him was rejected by the AO and the FAA.We find that FAA has decided the issue on the basis of the facts that were totally irrelevant.Downsizing of staff cannot be the purpose of any VRS. Here,we would like to refer to the judgment of the Hon'ble Calcutta High Court delivered in the case of Sail DSP VR Employees Association 1998 wherein it has been held that Section 10(10C) was inserted in order to make VRS attractive,so as to reduce human complements....
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....cheme of their employer SBI and in the returns of income filed for the year under consideration, exemption of Rs 5 lakhs was claimed by them u/s.10(10C) of the Income-tax Act, 1961. In the assessments completed u/s.143(3), the AO allowed the exemption claimed by the assessee u/s.10(10C) in view of the decision of Hon'ble Bombay High Court in WP No.1051 of 2010 in the case of Ravikant G. Seth vs. CIT rendered vide order dated 23.08.2010. By the said order, CIT-2, Thane was directed by the Hon'ble Bombay High Court to consider whether the petitioner was entitled to exemption u/s.10(10C) of the Act and the Rules made under the Income-tax Rules, 1962. As per the direction of Hon'ble Bombay High Court, the Ld. CIT-2, Thane passed an ....
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....ection to the AO to frame the same de novo after withdrawing exemption of Rs.5 lakhs granted to the assessees u/s.10(10C) of the Act as the requirement of Rule 2BA of IT Rules was not satisfied. Aggrieved by the orders of the Ld. CIT passed u/s.263 setting aside and revising the orders of the AO, the assessees have preferred these appeals before the Tribunal. 4.We have heard the arguments of both the sides and also perused the relevant material on record. Although the Ld. DR has strongly relied on the impugned orders of the Ld. CIT passed u/s.263 in support of the revenue's cases, it is observed that in paragraph no.5 of the said orders, the Ld. CIT himself has stated that nothing has been decided by the Hon'ble Bombay High Court....