2012 (6) TMI 806

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....f facts of the case are that assessee is an employee of S.B.I. He opted voluntarily retirement from SBI under exit option scheme of SBI on 01.05.2006. The assessee claimed exemption of Rs. 5,00,000/- u/s 10(10C) of the Act. The A.O. was of the view that this exemption u/s 10(10C) was available only if the scheme of voluntary retirement is in accordance with the requirement laid down in Rule 2BA of Income Tax Act, 1962. Since, according to him the exit option scheme of 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. As....

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....by the assessee are of non-jurisdictional High Courts and there is no direct judgment of Hon'ble Gujarat High Court. In appeal, the Learned Commissioner of Incometax (Appeals) following the decisions of the High Courts relied upon by the assessee allowed the deduction to the assessee. I find that the Hon'ble Madras High Court in the case of CIT vs. G V Vciuigopal 273 1TR 307 held as under: "Notions of equity do not apply in taxing statutes. Hence, if the assessee 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.....