TaxTMI 
TaxTMI 
2015 (2) TMI 395
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....t of ex gratia amount received by the assessee." 2. Facts in brief as mentioned in the corresponding assessment order passed u/s.143(3) dated 26.10.2010 were that the assessee had retired from the service of State Bank of India on 12th of July, 2007 under Exit Option (VRS) Scheme. In the computation of Income, the assessee had claimed deduction of Rs. 5 lacs u/s.10(10C) of IT Act. As per AO, the said ex gratia payment received under "Exit Option Scheme" of State Bank of India did not qualify for the benefit of exemption u/s. 10(10C) of IT Act. A show cause was issued and informed that the ex gratia payment received under VRS is eligible for exemption u/s.10(10C) of the Act only if that scheme of voluntary retirement fulfilled the conditi....
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....e was eligible for relief u/s.89. (iv) ACIT vs. C.L. Bugari(2006) 99 TTJ (Jp.) 185, wherein the case was concluded with the judgment that ex-gratia payments received on Voluntary Retirement is profit in lieu of salary u/s.17(3) and therefore, eligible for relief u/s.89, apart from exemption u/s.10(10C); issue being debatable one, AO was not justified in passing order u/s.154 for withdrawing relief u/s.89(1). (v) Surindra Singh vs. ITO (2005) 2 SOT 775 (Delhi), wherein the Delhi High Court concluded that assessee received a sum of Rs. 7,79,850/- as ex-gratia payment under VRS is eligible to relief u/s.89(1) as reduced by exemption u/s.10(10C)." 3. AO has also informed that the Bank vide letter dated 8th January, 2008 had accordingly....
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....in light of the above I am of the view that the decision of Ld.CIT(A),Valsad is not acceptable in principle. Tax effect involved is Rs. 1,50,896/-. Though the tax effect is below Rs. 2 lakh, but, as per CBDT's instruction no.5/2008, Para No.8(b) dated 15.05.2008 wherein it is mentioned that adverse judgment relating to the Board's order/notifications/instructions/circulars has been held to be illegal or ultra vires, then the decision of the appellate authority has to be challenged irrespective of the tax effect. The ld. CIT(A), Valsad has given the decision against the Board's Instructions No.F.No.200/34/2009-ITA.I dated 06.10.2009 and also the Chief C.I.T. Ahmedabad's letter No.CC/ABD /HQ/TECH/Exemption/ 10(10C)/2008- 09 dt....
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....f SBI did not satisfy the guidelines laid down in Rule 2BA of Income Tax Rule, exemption u/s 10(10C) of the Act was not available to the assessee, therefore, this amount of Rs. 5,00,000/- claimed as exemption by the assessee was added back to the total income of the assessee. Assessee went in appeal before ld. CIT(A) who, after taking into consideration the submission of the assessee, which were duly recorded by him in his appellate order, deleted the addition made by the A.O. of Rs. 5,00,000/-. Further aggrieved, now Revenue is in appeal before us. 4. At the time of hearing both the parties agreed that the assessee is now covered by the decision of this Tribunal in the case of ITO vs. Shri Kanaiyalal Vadilal in ITA No.3276/Ahd/2009 wher....
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....ee is entitled to two benefits on the plain language of statute, he has to be granted both those benefits. The second proviso to s. 10(10C) only refers to exemption claimed in any other assessment year. It is well settled that every assessment year is a self-contained unit. The assessment year in question in the present case is 2001-02 and the exemption claimed is in respect of this assessment year, a/though the exempt/on granted under s. 89(1) has been spread over several assessment years. The mere fact that the relief has been spread over several years, does not mean that the relief is not in respect of a particular assessment year. The Tribunal has rightly pointed out that in the IT Act, there are several provisions granting twin or doub....
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....ned Commissioner of Income-tax (Appeals). It is confirmed and the ground of appeal of the Revenue is dismissed." 5. In view of the above, the appeal filed by the Revenue is dismissed." 7. Since in respect of that very Scheme of SBI, a view has been taken by the Respected Coordinate Bench holding that the exemption as prescribed u/s.10(10C) is admissible, as also following the legal proposition laid down in the precedents cited by ld. AR, we hereby hold that in identical manner, this assessee is also entitled for the exemption as prescribed under law. Therefore, ground is allowed." 7. Having heard the submissions of both the sides, we are of the conscientious view that although the issue of Exit Option Scheme of SBI was considered b....