TaxTMI 
TaxTMI 
2018 (4) TMI 1132
X X X X Extracts X X X X
X X X X Extracts X X X X
.... income are specified, in which, the agricultural income and income received by an individual as a member of a Hindu undivided family are exempted and so many other exemptions are there. 3. Insofar as this case is concerned, Section 10(10C) of the Income Tax Act, 1961, is relevant, which reads as under: "10(10C)- 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 Univer....
X X X X Extracts X X X X
X X X X Extracts X X X X
....der 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." 4. Clause (viii) of Section 10(10C) specified a limit of Rs. 5,00,000/-. Rule 2BA of the Income Tax Rules, 1962 reads as under: "2BA. The amount received 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 Provinc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mployees; (iv) the vacancy caused by the voluntary retirement or voluntary separation is not to be filled up; (v) the retiring employee of a company shall not be employed in another company or concern belonging to the same management; (vi) the amount receivable on account of voluntary retirement or voluntary separation of the employee does not exceed the amount equivalent to three months salary for each completed year of service or salary at the time of retirement multiplied by the balance months of service left before the date of his retirement on superannuation: Provided that requirement of (i) above would not be applicable in case of amount received by an employee of a public sector company under the scheme of voluntary separ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tment has not preferred any appeal and the judgment has attained finality. However, in the case of Chandra Ranganathan & Ors. vs. Commissioner of Income Tax, Chennai, dated 21.10.2009, in Civil Appeal Nos.6997 - 7002 of 2009, the Hon'ble Supreme Court declared that the retiring employees of the RBI would be eligible for exemption under Section 10(10C) of the Act and set aside the order passed by the High Court, based on the circular issued by the Income Tax Department. 8. It is pertinent to note that pursuant to the judgment of the Bombay High Court in Commissioner of Income Tax vs. Koodathil Kallyatan Ambujakshan (2008) 219 CTR (Bom) 80, the Income Tax Department issued a circular that the retiring employees of RBI would be eligible f....