2009 (4) TMI 180

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....AJA PANDIAN J.-By framing the following question of law: "Whether the amount paid to employees under the voluntary retirement scheme is entitled for deduction? " the Revenue is on appeal before this court under section 260A of the Income-tax Act, 1961, against the order of the Income-tax Appellate Tribunal dated December 16, 2005, passed in I. T. A. No. 817/Mds/2004 in respect of the assessm....

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....(1) of the Act. The Assessing Officer rejected the claim of the assessee for the relief under section 89(1) of the Act and passed the assessment order granting exemption under section 10(10C) of the Act. On appeal, the Commissioner of Income-tax (Appeals) allowed the same in favour of the assessee. The Tribunal, on further appeal at the instance of the Revenue, held in favour of the assessee follo....

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....r to several years, did not mean that the relief was not in respect of a particular assessment year. There was no prohibition to the twin benefits in respect of an amount received under the voluntary retirement scheme. The relief contemplated under section 89(1) is aimed to mitigate the hardship that may be caused on account of the high incidence of tax due to progressive increase in the tax rate.....