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2023 (9) TMI 1524
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....d, all these appeals are being disposed off by this consolidated order for the sake of convenience and brevity. 3. With the consent of the parties, the appeal of Shri Suresh Pal Chauhan in ITA No. 83/Chd/2023 was taken as a lead case wherein the assessee has taken the following revised grounds of appeal: 1. "On the facts and under circumstances of the case in law, the Learned Commissioner of Income-tax (Appeals), NFAC,Delhi, erred in passing the order under section 250 of the Income-tax Act, 1961 against the appellant. 2. That relief u/s 89(1) was claimed on Gratuity and VRS amount and both were disallowed arbitrarily and illegally. 3. That claim of 89(1) was disallowed on the basis of allowing of claim of 10(10C) of the Income-tax Act, 1961. 4. On the facts and circumstances of the case the Ld.CIT(Appeals) NFAC, has erred in having not allowed the exemption u/s 10(10B) of compensation amounting to Rs. 36,07,536/- received on forced retrenchment under VRS on closure of HMT Ltd(Tractor Division), instead of exemption u/s 10(10C) of the Income Tax Act. That the appellant craves your permission to add, amend and delete any of the grounds....
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....on closure of Tractor Division, a loss- making Central Govt. Public Sector Undertaking, after taking into consideration the Press Note/Release dated 27.10.2016 along with approval for budgetary support to HMT by Govt. of India, Voluntary Retirement Scheme issued by HMT Ltd. vide order No. 15/16 dated 04.11.2016, Letter dated 04.11.2016 issued by Govt. of India, Ministry of Heavy Industries & Public Enterprises for budgetary support to HMT, Notice of closure along with closure order dated 14.02.2017 and also relying on the judgment of the Hon'ble Madras High Court in the case of Hindustan Photo Film Workers vide its decision dated 17/03/2017 in writ petition no. 18566 of 2015 and others on identical facts wherein it was held that VRS Package received on closure of the Industry is exempt under the provisions of section 10(10B) of the Act. It was submitted that the said decision has since been confirmed by the Division Bench of the Hon'ble Madras High Court vide its decision dated 29/06/2017 and the SLP against the decision of the Division Bench has since been dismissed by the Hon'ble Supreme Court vide its decision dated 19/02/2018. It was submitted that the Ld.CIT (Appeals),NFAC....
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....y, having regard to the need for extending the special protection to the workmen in the undertaking to which such scheme applies and other relevant circumstances, approve in its behalf. Section 10(10B) read with Explanation (a) to section 10(10B) provides that compensation received by a workman at the time of the closing down of the undertaking in which he is employed, shall be deemed to be compensation received at the time of his retrenchment and such compensation would be exempt u/s 10(10B). It was submitted that merely because the scheme was styled as VRS would not mean that the monetary benefits received by assessee due to shut down of the organization in which he was working is an ex-gratia payment received on VRS. If the entire facts of the case are analyzed, there is no dispute that the compensation is received by the assessee at the time of closing down of HMT-Tractor division, Pinjore and therefore, the same is deemed to be compensation received at the time of retrenchment u/s 10(10B) as the Government of India recommended a scheme as special package to give relief to the employees of HMT and this proposal was approved by the Union Cabinet and such approval was a budgetary....
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.... In relaxation of DPE guidelines disallowing pay revision in sick/loss making CPSEs, as against the current pay scales of 1997, to all the employees Tractor Division. Employees not opting for VRS would be retrenched under the Industrial Disputes Act, 1947 as the Tractor Division is proposed to be closed down." 5.1 It was submitted that as per the scheme, an offer was made to all employees to opt for appropriate VRSA/SS scheme and to those who opted for the VRS/VSS scheme, the payments were made as per the attractive and improved VRS/VSS package based on 2007 notional pay scales. However, the scheme also laid down that employees who were not opting for VRS would be retrenched under the Industrial Disputes Act, 1947. The scheme was very clear in distinguishing those who opt for VRS scheme and those who do not opt for VRS scheme. Along with the scheme, "statement of implementation schedule was also enclosed wherein separate time lines were also given to VRS/VSS employees and to those 'retrenchment employees not opting for VRS/VSS. 5.2 It was submitted that the provisions of Income Tax Act are separate for those who are given VRS/VSS and those who are retrenched under the Ind....
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....under sec.10(10B) of the Act. 5.5 It was submitted that in view of the fact that he received payment of ex-gratia under the VRS/VSS scheme, it is not possible to shift his exemption from sec. 10(10C) to sec. 10(10B) and further, no relief under sec.89 can be allowed. It was accordingly submitted that there is no infirminity in the order so passed by the lower authorities and no interference with the assessment and appellate order is therefore warranted in this case and the appeal filed by the assessee be dismissed. 6. We have heard the rival contentions and perused the material available on the record. The issue under consideration relates to whether the assessee is eligible for exemption under section 10(10B) or under section 10(10C) of the Act and it would therefore be necessary to refer to the relevant provisions which have a bearing on the matter under consideration. 7. The provisions of Section 10(10B) read as under: "any compensation received by a workman under the Industrial Disputes Act, 1947 (14 of 1947), or under any other Act or Rules, orders or notifications issued thereunder or under any standing orders or under any award, contract of service or other....
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....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 Act, 1956 (3 of 1956); or (vii) an Indian Institute of Technology within the meaning of clause (g) of section 3 of the Institutes of Technology Act, 1961 (59 of 1961): or (viia) any State Government; or (viib) the Central Government; or (viic) an institution, having importance throughout India or in any State or States, as the Central Government may, by notification in the Official Gazettes, specify in this behalf; or (viii) such institute of management as the Central Government may, by notification in the Official Gazette, specify in this behalf. "on his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in sub-clause (1), a scheme of voluntary separation, to the extent such amount does not exceed five lakh rupees: Provid....
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.... sector company, is in accordance with the following requirements, namely:- (i) it applies to an employee who has completed 10 years of service or completed 40 years of age; (ii) it applies to all employees (by whatever name called) including workers and executives of a company or of an authority or of a co-operative society, as the case may be, excepting Directors of a company or of a co-operative society: (iii) the scheme of voluntary retirement or voluntary separation has been drawn to result in overall reduction in the existing strength of the employees; (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 th....
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....he payment of such amount are framed in accordance with such guidelines (including inter alia criteria of economic viability) as may be prescribed. It has been further provided that quantum of exemption shall not exceed five lakh rupees. 12. We therefore find that one of the fundamental differentiation between the two exemption provisions and the respective sphere these provisions operate in lies in the nature and intent of the scheme - whether the scheme is for extending special protection to the workmen in the undertaking in the context of closing down of the undertaking or whether the scheme is for employees seeking voluntarily retirement or voluntary separation and the scheme is drawn up to result in overall reduction in the existing strength of the employees and to enable economic viability of the undertaking which continues to operate and function and there is no proposal or intent to close down the undertaking. 13. The inter-play between the aforesaid exemption provisions keeping in view the objective of the scheme and nature of benefit which flows to the workmen/employees under the package came up for consideration before the Hon'ble Madras High Court in case of Hindu....
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....workman, at the time of the transfer (whether by agreement or by operation of law) of the ownership or management of the undertaking in which he is employed from the employer in relation to that undertaking to a new employer, shall be deemed to be compensation received at the time of his retrenchment if : - (i) the service of the workman has been interrupted by such transfer ; or (ii) the terms and conditions of service applicable to the workman after such transfer are in any way less favourable to the workman than those applicable to him immediately before the transfer; or (iii) the new employer is, under the terms of such transfer or otherwise, legally not liable to pay to the workman, in the event of his retrenchment, compensation on the basis that his service has been continuous and has not been interrupted by the transfer; (c) the expressions employer and workman, shall have the same meanings as in the Industrial Disputes Act, 1947 (14 of 1947); S.10(10C) any amount received (or receivable) by an employee of:- (i) a public sector company; or ........... (viii) such institute of management as the Central Government ....
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....proposal was approved by the Cabinet Committee on Economic Affairs and such approval was a non-plan budgetary support. The Government of India did not authorise the HPF to bring out a VRS package, but what was approved was a non-plan budgetary support, which is in the nature of a grant given by the Central Government to the second respondent for a specific purpose and a specific reason. The purpose is to rehabilitate the employees of HPF and the reason being that the employees have been receiving the pay scales as of 1987, the increase in the cost of living has made it very difficult for them to survive and meet their financial obligations and the Government thought fit to offer this package to enable the employees to come out of the financial crises. If such was the sanction made by the Central Government, it undoubtedly would qualify the parameters laid down under sub-section (10B) of Section 10 of the Income Tax Act. This is so because the monetary benefit which will accrue to the employees is in the nature of a compensation, which is pursuant to a decision taken by the Government of India specifically for the employees of HPF. Therefore, the amount would be exempted from income....
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....be a special privilege/protection granted to the employees of the HPF Ltd and therefore, the provisions of the Section 10(10B) of the Income Tax Act, 1961 are attracted and accordingly, the same shall not fall within the definition of income, while computing the total income of concerned employee and income tax cannot be deducted from the severance package paid to the employees of HPF. (iii) Pursuant to interim orders dated 22.12.2015, the amounts deducted towards income tax was directed to be kept in deposit to the credit of the Writ Petition in Indian Bank, High Court Branch. In the light of the finding rendered supra holding that no income tax is recoverable from the severance package, the amount deducted as income tax shall be disbursed to the respective employees by the respondents. (iv) It is reiterated that in these writ petitions, the Court has considered the VRS package and the consequential circular issued by the HBF relief sought for, for payment of 72 months salary instead of 60 months salary as proposed in the VRS Scheme and not to deduct income tax on the amount payable to them as in respect of recovery which were sought to be made pursuant to the ci....
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....officers. Therefore, under normal circumstances whatever reasoning assigned by this Court in the preceding paragraphs would apply to the employees in the workmen category. Nevertheless, the Central Government does not make any distinction in its press information, dated 28.02.2014, nor do the impugned proceedings/circular, as it has extended the special benefit to all the employees of HPF. Therefore, in the given facts and circumstances, whatever is the interpretation given by this Court while testing the prayer made in the Writ Petitions filed by the workers would equally apply to this Writ Petition filed by the officers association. 15. In the instant case, what is therefore relevant to determine is what has been approved by the Government of India and the objective and purposes thereof and the nature of the benefit which ultimately flows to the employees. In this regard, we refer to press note dated 27/10/2016 issued by the Ministry of Heavy Industries and Public Enterprises, Department of Heavy industry and the contents thereof reads as under: "Budgetary support to HMT Ltd for payment of outstanding salary/wages and other statutory dues, introduction of VRS/VSS and ....
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....f salary / wages and other retirement dues, it has been decided to close down the Tractor Division of HMT Ltd by offering attractive VRS/VSS to its employees and clearing all their dues. 4. It will have a financial implication (cash outgo) of Rs. 718.72 crore for payment of outstanding salary, wages and statutory dues, VRS/VSS ex-gratia payments and clearing of Tractor Division's liabilities towards Bank, creditors etc. 5. The Cabinet has also accorded approval for transfer of selected small parcels of HMT land at Banglore and Kochi to different Govt. entitles for their use in larger public interest." 16. We also refer to office order No. 15/16 dated 4/11/2006 issued by HMT Ltd containing details of the VRS/VSS scheme for the permanent employees who are on rolls of the Tractor Division and the contents thereof read as under: "The Administrative Ministry vide letter No. 1-0501/8/2015-PE.X dated 4th November 2016 has communicated that the Union Cabinet In its meeting held on 27th October 2016 considered and approved the closure of operations at HMT Tractor Division with offer of an attractive and Improved VRS/VSS package based on 2007 notional pay sc....
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....ght or claim over the same on any future date. 6. The settlement allowance will be as per 1997 pay scale. 7. The VRS/VSS benefits which Includes Ex-gratia, Gratuity, EL encashment and other terminal benefits as well as pending salaries, will be released to the employees on receipt of funds from Govt. of India/DHI. The employees should register their names In the Employee Resource Centre (ERC) and submit their VRS/VSS applications in the prescribed format In triplicate indicating clearly the Scheme under which they opt for VRS/VSS, to the Sanctioning Authority through proper channel. The Sanctioning Authority will communicate the acceptance of VRS/VSS to the employee indicating the date of relieving based on the decision of the Management in view of the operational requirements. It may be noted that VRS/VSS application once submitted cannot be withdrawn. The Unit HRM/Finance Chiefs shall forward the details of the recommended VRS/VSS applications In Annexure-I to JGM(HR), HMT Limited, CHO Bangalore and to the Assistant General Manager (CF), HMT Limited, 'CHO Bangalore in Annexure-II, Annexure-III, Annexure-IV and Annexure-V on daily basis for ....
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....a paid up equity shareholding in the company of Rs. 1204.09 Crore and write-off of Govt. loans provided to HMT Ltd. (Re 72.02 Cr) along with accrued Interest (Rs 18.56 Cr) to be frozen as on 31/03/2016, with no further liability of Interest. (iv) Sale of land not currently in use at Pinjore unit to the Govt. of Haryana on mutually agreed terms and compensation as mentioned in Para 2.9 which may be seen as under- "HMT Ltd. Board is also in favour of monetizing the currently unutilized land at Pinjore by transferring the same to the Government of Haryana (GoH) against sultable compensation. It is relevant to state that there exists a dispute on the matter of ownership of the land at Pinjore between HMT Ltd and the GoH. The Issue is presently before the High Court of Haryana and Punjab, GoH is agreeable, In principle, to compensate HMT Ltd. for the sald land. The Company has identified 448 Acres of at present unutilized land in Pinjore which can be transferred. Govt. of Haryana has however, indicated that out of the above, only 306 acres can be utilized by them and the rest are covered by thick plantations, water bodies/Nullah etc. GoH/HSIDC is prepared to pay 50% of....
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....A) in Kochi, Kerala at circle rate or market rate determined by CPWD, whichever is higher. d) Prior approval for the transfer/sale of about 5.8 acres of land at Bangalore, to Income Tax Department and Central Excise Deptt. at circle rate or market rate determined by CPWD, whichever is higher. 2. In view of the above, you are requested to take appropriate action as approved by Cabinet and complete the process as per the timelines enclosed herewith." 18. In case of Shri Prem Pal (supra) who was one of the employees of HMT Ltd., Tractor Division and who opted for the VRS scheme and had received the VRS compensation, the matter came up for consideration before the Ld. CIT(A), Panchkula who vide his order dt. 30/01/2020 has held that the assessee was eligible for exemption under section 10(10B) of the Act as the compensation received by the assessee at the time of VRS qualifies the parameters as laid down under section 10(10B) of the Act. The Ld. CIT(A) has discussed at length the intent and the objectives behind the HMT VRS scheme as well as compared the fact pattern with the case of Hindustan Photo Film Workers Vs. The Government of India (Supra) wherein the matte....
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....y the explanation (a) to section 10(10B), (ii) the case of the appellant does not fall under the second proviso to section 10(108) as the VRSVSS amount received by him was not of the nature of compensation as the Central Government's offer of VRSVSS announced on 27.10.2016 does not suggest that it was introduced having regard to the need for extending special protection to the employees of HMTL-TD, (iv) the case of the appellant is covered by provisions of section 10(10C) of the Act as he had opted the scheme voluntarily and he has not furnished any evidence opposing the scheme of VRS/VSS Further, the scheme also provided that employees not opting for VRS/VSS shall be retrenched. Since, the appellant has not been retrenched the amount received by him is of the nature of receipt on voluntary retirement or voluntary separation and accordingly, he is entitled to exemption of Rs. 5,00,000/- out of the VRS/VSS receipts AO made addition of Rs. 23,12,978/- in the total taxable income of the appellant. 5.2.1. Both these Public Sector Undertakings (PSU) ie. HPF & HMTL-TD are monitored by the Department Heavy Industries (DHI), Government of India. Most of the PSUs except BHEL ar....
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....v. 2013. The statutory dues like Terminal benefits, PF, Gratuity, Leave encashment etc. are also pending for the employees of other Divisions of HMTL i.e. Corporate Head Office (CHO), Common Service Division (CSD) and Food Processing Machinery unit, Aurangabad (FPA). In view of the deteriorating position of the company and hardship being faced by the employees due to non- payment of salary/ wages and other retirement dues, it has been decided to close down the Tractor Division of HMT Ltd by offering attractive VRS / VSS to its employees and clearing all their dues. Salient features of the press release are that (1) the Union Cabinet has approved the budgetary support to HMTL for payment of outstanding salary/wages and other employee related dues. It also approved closure of HMT Tractor Division by offering attractive VRS/VSS at 2007 notional pay scales, (ii) It will have a financial implication (cash outgo) of Rs 718.72 crore for payment of outstanding salary, wages and statutory dues, VRS/VSS ex-gratia payments and cleaning of Tractor Division's liabilities towards Bank, creditors etc., and (ii) the Cabinet has also given its approval for transfer of selected small parcels of ....
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.... VRS were retrenched in January 2018. Hence, VRS scheme must be read in the nature of retrenchment compensation/ compensation on termination of employment on account of closure of HMTL-TD. The purpose behind this scheme in no uncertain terms is to rehabilitate the employees of HMTL-TD. The increase in the cost of living has made it very difficult for them to survive and meet their financial obligations and the Government thought it fit to offer this package to enable the employees to come out of the financial crises. This view eloquently emerges, if we carefully peruse the intent and purpose behind the scheme. It is to reiterate that in the said press release, it is categorically stated that the Tractor Division has been incurring losses continuously and is unable to pay the salaries and other statutory dues of its employees. The employees of Tractor Division based at Pinjore have not been paid salary since July, 2014 and other statutory dues are also pending since November, 2013. The statutory dues like Terminal benefits, PF, Gratuity. Leave encashment etc. are also pending for the employees of other Divisions of HMTL ie. Corporate Head Office (CHO), Common Service Division (CSD) ....
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....mpensation would be exempted from income tax in terms of the second proviso to Section 10(10B) of the Act. 20. Subsequently, following the decision in case of Shri Prem Pal (Supra), in case of Shri Karam Pal (Supra), the Ld. CIT(A), Panchkula vide his order dt. 31/01/2020 pertaining to the A.Y. 2017-18, has again decided the matter in favour of the assessee. 21. Further, the Ld. CIT(A), NFAC, Delhi in case of Shri Raj Kumar Singh pertaining to A.Y 2017-18 vide order dt. 18/08/2021 has again decided the matter allowing the exemption under section 10(10B) of the Act and the relevant findings reads as under: "7. In this case, the appellant had opted for Voluntary Retirement Scheme introduced by HMT Ltd, on closure of its Tractor Division in Bellary Road, Bangalore in the year 2016. The appellant had received Voluntary Retirement benefits and filed the return of income declaring total income at Rs. 57,86,720/- after Chapter VIA deductions and claimed rebate u/s. 89 of the I.T. Act, 1961. Accordingly, the CPC, Bengaluru has processed the return, treating the VR benefit as part of total income. 8. In this connection, the provisions of Section 10(10B) of the Income....
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....l Gazette for the purpose of granting exemption from taxation under section 10(10B) of the Act. 4.4 Appellant pleaded that the compensation received at the time of closure of the factory clearly fell under the provisions of section 10(10B) of the Act. Appellant also brought to the notice that under similar circumstances the courts held that the package received by the workmen's compensation pursuant to the decision taken by the Central Government to offer special protection to the employees, stand exempted from direction of income tax. Appellant relied on the decision in the case of Hindustan Photo Films, in written appeal numbers 616 and 753 to 758 of 2017 and C.M.P Nos. 10332 to 10337 of 2017 double judge bench order dated 29/06/2017. Appellant also relied on the Supreme Court judgement in order dated 19/02/2018 SLP (Civil) Diary No(s). 37247/2017. 4.5 Appellant's submissions were carefully considered. It is clear that the appellant received the compensation amount subsequent to the closure of his employer, HMT watches Ltd, Ranibagh. The closure of the company and subsequent compensation to employees was made according to the decision of the Cabinet Comm....
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....se, is not a case of a single assessee, but a large section of employees of HPF Ltd., a Government of India company. If it is clear from the plain language adopted in the scheme as regards the nature of benefit which is extended to the employees, then the employees need not be driven to approach the Assessing Officers to establish that the receipts are not taxable in their hands. Therefore, the nature of the benefit which flows to the employees under the package has to be tested on its plain language without adding any interpretation. 31. As mentioned above, the Government of India had recommended a scheme to give relief to the employees of HPF. This proposal was approved by the Cabinet Committee on Economic Affairs and such approval was a non-plan budgetary support. The Government of India did not authorise the HPF to bring out a VRS package, but what was approved was a non-plan budgetary support, which is in the nature of a grant given by the Central Government to the second respondent for a specific purpose and a specific reason. The purpose is to rehabilitate the employees of HPF and the reason being that the employees have been receiving the pay scales as of 1987, the....
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....to take cognizance of these decisions. It is not even a case where the aforesaid decisions so rendered in other cases have been challenged by the Revenue or any distinguishing facts and circumstances are available on record and/or pointed out by the ld CIT(A). Therefore, under the identical set of facts and circumstances of the case, where the matters have been decided and the Revenue is not in appeal, following the principle of consistency as well, the matter deserve to be decided in favour of the assessee at the first appellate level itself which unfortunately has not happened in the instant case. 24. In light of aforesaid discussion and in the entirety of facts and circumstances of the case, the assessee is held eligible for exemption u/s 10(10B) on whole of the amount received of voluntary retirement compensation amounting to Rs 36,07,576/- and the AO is directed to allow necessary relief to the assessee. In the result, the ground no. 3 of the assessee's appeal is allowed. 25. In ground no. 2, the limited submission of the ld AR was that the assessee be allowed relief u/s 89 in respect of net gratuity (after excluding exemption claimed u/s 10(10)) of the Act. On perusal o....
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....adras High Court in case of Hindustan Photo Film (supra) wherein the compensation received under the similar scheme were held exempt under section 10(10B) of the Act. It was submitted that the said decision was reconfirmed by the Division Bench and the Government of India thereafter filed the SLP before the Hon'ble Supreme Court which was dismissed on 19/02/2018. It was accordingly submitted that where the matter has been duly examined by the Hon'ble Madras High Court and the same has attain finality by virtue of SLP been dismissed, there is no basis for the Revenue to continue to agitate the said issue. 32. It was further submitted that the Ld. CIT(A), Panchkula and the Ld. CIT(A), Chandigarh have decided more than 350 cases in favour of the other employees of HMT wherein similar claim were made in respect of exemption in respect of VRS compensation. Similarly, the Ld. CIT(A), Karnal have also decided number of cases in favour of other employees of the HMT Ltd. who have made similar claims. 33. It was further submitted that even the Ld. CIT(A), NFAC, Delhi in number of cases have accepted the claim of other employees and in this regard, our reference was drawn to the decisio....
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....esh claim for the first time. This submission needs to be stated to be rejected. In the first place, the ITAT was conscious about the fact that this claim was set up by the appellant for the first time before it, and was clearly inconsistent and contrary to the stand taken in the return filed by the appellant for the concerned assessment year including the notings made by the officials of the appellant. Yet, the ITAT entertained the claim as permissible, even though for the first time before the ITAT, in appeal under Section 254 of the 1961 Act, by relying on the dictum of this Court in National Thermal Power Co. Ltd.. Further, the ITAT has also expressly recorded the no objection given by the representative of the department, allowing the appellant to set up the fresh claim to treat the amount declared as capital expenditure in the returns (as originally filed), as revenue expenditure. As a result, the objection now taken by the department cannot be countenanced. 11. Learned ASG had placed reliance on the decision of this Court in Goetze (India) Ltd. vs. Commissioner of Income Tax in support of the objection pressed before us that it is not open to entertain fresh claim b....
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.... claim even though not raised in the return of income or during the assessment proceedings, the same can be raised during the appellate proceedings, the said claim is hereby admitted. Further, we find that the facts and circumstances of the case are exactly identical as in ITA No. 83/CHD/2023 and both the parties have fairly admitted to the same and similar contentions have been raised. Given the identical facts and circumstances of the case, our findings and directions as contained in ITA No. 83/Chd/2023 shall apply mutatis mutandis to this matter. 39. The appeal filed by the assessee is accordingly allowed. 40. In ITA No.45/Chd/2023 pertaining to A.Y 2017-18, it was submitted by the ld AR that under similar facts and circumstances of the case, exemption u/s 10(10B) has been denied to the assessee, Shri Bhup Singh in respect of VRS compensation of Rs 24,85,669/- received on closure of HMT Ltd (Tractor Division) and relief u/s 89 has been denied in respect of net gratuity of Rs 302,573/- and similar contentions as raised above may be considered. It was submitted that there is a delay of 2 days in filing the present appeal and condonation application along with affidavit is pl....
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..... The appeal filed by the assessee is accordingly allowed. 48. Before parting, it would not be out of place to mention that coupled with the fact the exemption u/s 10(10B) has been allowed by the ld CIT(A) in various other similar cases across jurisdictions as we have noted above, claim of exemption has been allowed by the AO in case of employees of HMT even at the assessment stage in various jurisdictions across the Country as pointed out by the ld AR. We therefore find that it is a classic case of unnecessary litigation coupled with unnecessary indulgence of this Tribunal which the assessee left with no option has to seek and approach to seek necessary redressal. Where the claim has been allowed at the assessment and first appellate level and the Revenue is not aggrieved with the same and more so, where the matter has been examined by the Hon'ble Madras High Court and thereafter, has attained finality in view of dismissal of the SLP by the Hon'ble Supreme Court, it is high time that the Central Board of Direct Taxes may look into the matter and come out with an appropriate instruction/guidance to the field officers that such matters need not be litigated any further and where ....
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....0 permanent employees The operations of the Company have come to a standstill due to disconnection of power to the Polyester X-Ray Plant and R&D from May 2013 and non- availability of funds to procure the rawmaterials Government even prior to has been implemented in the Company from November 2016. As on 31st March 2017, 850 VRS Scheme 150 employees retrenched in employers have been relleved under this January 2018 and their case is pending with Punjab and Haryana High Court Scheme was floated on 04.11.2016. VRS at 2007 notional pay scales has been implemented in the Company from November 2016.This has been done by granting a onetime employees of HMTTD relaxation of the DPE guidelines for all the Central announcing VRS package had taken a Therefore, it is plea of the appellant that it is decision to close down the establishment. 1997 pay a case of a closure. Employees scales Ministry of Heavy Industries & Public Enterprises Circular dated 28 September 2016 mentioning Department of Public Enterprises (DPE), Ministry of Heavy Industries. has recently PublicEnterprise guide....