TaxTMI 
TaxTMI 
2008 (8) TMI 343
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....tively. 2. The relevant assessment year is 2004-05. The facts, as culled out from the statement of facts, are as follows: The assessees were employees of the Reserve Bank of India, Chennai, retired voluntarily under the Optional Early Retirement Scheme. They claimed exemption under section 10(10C) of the Income-tax Act for Rs. 5 lakhs each out of the compensation received under the above scheme. The Assessing Officer found that the Reserve Bank of India has not granted exemption under section 10(10C) on the compensation received under the above scheme, but has deducted tax duly treating the compensation as fully taxable and remitted to the Government account. The assessees made a claim under section 10(10C) independently in the comput....
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.... so as to grant exemption and this case is also identical to the case already decided by this court in T. C. No. 101 of 2007, etc., batch dated February 25, 2008 (CIT v. M. Chelladurai [2009] 317 ITR 370). 4. In the above referred judgment, the Revenue assailed the order of the Tribunal granting the relief of deduction under section 10(10C) of the Income-tax Act, 1961, to the respective assessees, who have severed their service connection from their employers-the ICICI Bank and the Reserve Bank of India, under a scheme framed in the year 2003 called the ICICI Bank Early Retirement Option 2003 and the Optional Early Retirement Scheme (OERS) 2003, respectively., wherein after extracting the need for introduction of the scheme and the objec....
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....schemes framed are not in accordance with the requirement of rule 2BA of the Income-tax Rules. The requirement of the statutory provisions is that the exemption from tax under section 10(10C) is available on the amount received under a scheme of voluntary retirement or a voluntary separation framed in accordance with the guidelines prescribed and specified in rule 2BA. As the schemes had not been introduced for the purpose of making over the reduction in the existing strength of the employees and do not provide that the vacancy caused by the voluntary retirement or voluntary separation shall not be filled up, the requirements of clauses (iii) and (iv) of rule 2BA have not been fulfilled. 17. The employers who are the authors of the schem....
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....ion under section 10(10C) of the Income-tax Act, 1961, to the employees who had opted for OERS. 18. In order to entitle the person the benefit under section 10(10C) of the Act the provisions of section 10(10C) and rule 2BA should be complied with cumulatively and compliance with some of them would not entitle the employee the benefit as claimed for. 19. The CBDT Circular No. 640 has also, clarified that if all the conditions specified in section 10(10) and rule 2BA of the Rules are satisfied, then only the assessee would be entitled to the benefit and in those cases, the employer need not deduct at source. Thus, it is clear that the scheme is not strictly in accordance with section 10(10C) and rule 2BA. 20. For the foregoing reason....