TaxTMI 
TaxTMI 
2016 (2) TMI 823
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....Assessee filed a return of income for AY 2004-05 declaring total income of Rs. 4,04,672/- on 15.10.2004 claiming exemption u/s.10(10C) of the Income Tax Act, 1961 (Act). Sec.10(10C) of the Act reads thus: "Section 10(10C) reads as under : Any amount received or receivable by an employee of - (i) a public sector company; or (ii) any other company; or (iii) an authority established under a Central, State or Provincial Act; or (iv) a local authority; or, (v) a co-operative society; or (vi) a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission....
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....llowed to an assessee under section 89 for any assessment year in respect of any amount received or receivable on his voluntary retirement or termination of service or voluntary separation, no exemption under this clause shall be allowed to him in relation to such, or any other, assessment year." Under the first proviso to Sec.10(10C) of the Act, the Scheme has to satisfy the guidelines as may be prescribed. Rules have been framed and we are concerned with r. 2BA. The relevant portion of the rule reads as under : ".....at the time of his voluntary retirement or voluntary separation shall be exempt under cl. (10C) of s. 10 only if the scheme of voluntary retirement framed by the aforesaid company or authority or co-operative soci....
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....case of employees of RBI that benefit of deduction u/s.10(10C) of the Act cannot be allowed as the conditions prescribed in the Rules were not satisfied. The Assessee filed a return in response to the notice u/s.148 of the Act withdrawing the claim for deduction u/s.10(10C) of the Act made in the original return of income. The said return was accepted by the AO and an order u/s.148 read with Sec.143(3) of the Act was passed on 8.8.2006. Subsequently the Assessee noticed that his colleagues who received similar sums under OERS succeeded in judicial proceedings in getting deduction u/s.10(10C) of the Act. The Assessee therefore sought legal recourse to get deduction u/s.10(10C) of the Act by filing appeal against the order of the AO dated 8.8....
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....w of the aforesaid circumstances the assessee could not file the appeal by following up with the Authorised Representative. The assessee after realizing that similar claims made by his colleagues was accepted by the Tribunal and those colleagues received refund form the department pursued the matter vigorously and had filed the appeal in the end of November, 2014 after getting a proper reference of the present AR from his colleagues. 4. I have considered the reasons given in the application for condonation of delay and are fully satisfied that the delay in filing the appeal and the several judicial pronouncement on the approach to be adopted in dealing with delay in filing appeals referred to by the learned AR in his submissions before t....
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.... 7. Now the situation in the present case is that the Assessee would be entitled to the benefit of deduction u/s.10(10C) of the Act but the delay in filling the appeal would be the only hurdle in not getting such benefit. Tax liability has to be in accordance with law and no tax shall be levied or collected save under the authority of law. There cannot be a liability to tax by default. Keeping in view the principles emanating from the decisions referred to above and keeping in view the fact that the Assessee would be otherwise entitled to the benefit of deduction u/s.10(10C) of the Act and keeping in mind the circumstances in which the appeal of the Assessee was filed belatedly, we are of the view that the delay in filing the appeal should....