TaxTMI 
TaxTMI 
2018 (3) TMI 303
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....148 of the Act. The learned Counsel for the assessee has not pressed this ground of appeal; hence, it is rejected. 3. In Ground No.3, the assessee has challenged initiation of penalty under Section 271(1)(c) of the Act. To our mind, it is premature at this stage; hence, not maintainable. Therefore, the same is also rejected. 4. In Ground No.4, the assessee has pleaded that interest under Section 234A/B/C was not leviable upon her; however, learned Counsel for the assessee admitted that it is consequential in nature. 5. Thus, we are left with Ground No.2, in which the assessee has pleaded that learned CIT(A) has erred in confirming the disallowance of exemption claimed under Section 10(10B) of the Act amounting to Rs. 5,00,000/-. ....
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....ard to that assessee travelled upto the Tribunal and the Tribunal held that the assessee is entitled for the benefit under Section 10(10B) of the Act. He placed on record copy of the Tribunal's order passed in ITA No.1472/Ahd/2014. 10. Learned Departmental Representative, on the other hand, was unable to controvert this contention of the learned Counsel for the assessee. He relied upon the orders of the Revenue Authorities. 11. We have duly considered the rival contentions and gone through the record carefully. We find that the Tribunal has considered an identical issue in the case of Vishnu Mohan T. Nair Vs. ITO (ITA No.1472/Ahd/2014), wherein the assessee was also working with ACNielsen ORG Marg Pvt. Ltd. and he was transferred from....
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....ture of compensation under the Industrial Disputes Act, it is evident from a plain look at Hon'ble High Court's judgment dated 25th June 2007, a copy of which is placed before us as well, that, while taking note of the payment of Rs. 6,50,000 by the employer, it was observed that "order passed by the Tribunal was modified to that extent". The order passed by the Industrial Tribunal was admittedly under the Industrial Disputes Act 1947, and once it is held that the said order stands modified so as to take into account the payment of, inter alia, payment of Rs. 6,50,000 by the employer, the said payment cannot but be treated as a compensation under the Industrial Disputes Act, 1947. The first limb of Section 10(10B) is thus satisfied. The nex....
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.... of service is covered by these two clauses. As a matter of fact, case of the revenue is that there is no termination at all as it is a resignation by the employee which has been accepted by the employer and the reliance is placed on the documentation in settlement documents. Such a plea is only fit to be noted and rejected. Here is a settlement and for a consideration that the assessee has quit employment, and the assessee's leaving the employment is dependent upon the payment being made by the employer. Resignation is a voluntary and unilateral act; there cannot be a resignation by the employee on payment of a compensation by the employer. Wordings of the arrangements apart, such an arrangement is de facto as also in the eyes of law an ar....
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....r the emphasis placed on the clause, in the settlement deed, to the effect that 'the respondent shall, upon receiving the ex gratia amount stand resigned from the post as it stands at the present day, without entering in to dispute whether he would be considered to have resigned from Vadodara or Mumbai", as we have said before, nothing really turns on this clause as what is to be seen as the factual and legal import of the arrangement rather than the wordings employed therein. In any case, once we come to the conclusion, on an appreciation of all the relevant factors- including the terms of settlement deed, that it is de facto termination of employment, on payment of agreed compensation, this observation cannot be picked up in isolation and....
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....lity for exemption is concerned, is satisfied. That, however, is not the end of the matter. As regards the amount eligible for exemption under section 10(10B), it is specifically provided in the aforesaid section that the amount eligible for exemption will be the least of (i) actual amount received by the assessee; (ii) the amount specified by Central Government i.e. Rs. 5,00,000; and (iii) an amount calculated in accordance with the provisions of clause (b) of Section 25F of the Industrial Disputes Act, 1947 i.e. 15 day's average pay for every completed years of services or part thereof in excess of 6 months. One of the important restrictions on the amount eligible for exemption under section 10(10B) is that it should not exceed fifteen da....