Shri Dilipsinh J Bhatti, RAJKOT-GUJARAT V. The Assistant Commissioner of Income Tax, Range-4, RAJKOT-GUJARAT

ITA 1269/RJT/2010

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 7369 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-12-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 16-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Assessee Lawyers: DM RINDANI; J C RANPURAC A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT. BEFORE SHRI T. K. SHARMA (JM) AND SHRI A. L. GEHL OT AM). ITA NO.1269/RJT/2010. (ASSESSMENT YEAR 2007-08.) DILIPSINH J. BHATTI, VS. THE A.C.I.T., RUSHIKESH, 3, NAJYOT PARK, RANGE 4, RAJKOT.. KALAWAD ROAD, RAJKOT.. PAN:ABZPB 9472H.. (APPELLANT) (RESPONDENT) ITA NO.1270/RJT/2010. (ASSESSMENT YEAR 2007-08.) HARSUKHLAL K. GHETIA, VS. THE A.C.I.T., A-3, TIRTH APARTMENT, RANGE 4, RAJKOT.. B/H.MILAPNAGAR,RAJKOT... PAN:ACCPG0695B.. (APPELLANT) (RESPONDENT) ITA NO.1271/RJT/2010. (ASSESSMENT YEAR 2007-08.) SHRI MANOJBHAI L. SANGADIA, VS. THE A.C.I.T., KRISHNA, 4, AFRICA COLONY, RANGE 4, RAJKOT.. 150 FT. RING ROAD BEHIND WATER TANK,RAJKOT.. PAN:AGGPS5797Q.. (APPELLANT) (RESPONDENT) ITA NO.1272/RJT/2010. (ASSESSMENT YEAR 2007-08.) SHRI CHUNILAL P. BHIMJIYANI, VS. THE A.C.I.T., VANDAN1, KARAN PARK, RANGE 4, RAJKOT.. PLOT NO.21B, OPP:ASTRONSOCIETY, RAJKOT.. PAN:ABKPB6852G.. (APPELLANT) (RESPONDENT) ITA 1269 TO 1272-RJT-2010. A. Y. 2007-08.. 2 REVENUE BY : SHRI M. K. SINGH, D. R. ASSESSEE BY : SHRI D. M. RINDANI, C.A. & J.C.RANPU RA,CA DATE OF HEARING : .21-12-2011. DATE OF PRONOUNCEMENT : 22-12-2011. O R D E R. PER BENCH : THESE APPEALS ARE FILED BY DIFFERENT ASSESSEES AG AINST THE APPELLATE ORDER OF COMMISSIONER OF INCOME TAX (APPE ALS)-III, RAJKOT DATED THREE DATED 02-08-2010,& ONE DATED 16-08-2010 ALL FOR AS SESSMENT YEAR 2007-08. 2. THE COMMON GROUND RAISED IN THESE APPEALS IS IN RESPECT OF REJECTION OF CLAIM OF ASSESSEE FOR EXEMPTION U/S.10 (10C) OF THE ACT IN RESPECT OF THE AMOUNT RECEIVED BY THE ASSESSEE UNDER STATE BAN K OF SAURASHTRA EXIT OPEN SCHEME. THE AMOUNT IN DISPUTE OF EACH ASSESSEES AR E AS UNDER:- 1. IN CASE OF DILIPSING J. BHATTI, RS.5,00,000/- 2. IN CASE OF HARSUKHLAL K. GHETIA, RS.5,00,000/-. 3. IN CASE OF MANOJ L. SANGADIA, RS.5,00,000/- 4. IN CASE OF CHUNILAL P. BHIMJIYANI, RS.5,00,000/- . 3. THE GROUND RAISE IN THESE APPEALS IS ON THE BASI S OF IDENTICAL SET OF FACTS, THEREFORE, FOR THE SAKE OF CONVENIENCE, ALL THESE A PPEALS ARE DECIDED BY THIS COMMON ORDER. 4. AT THE OUTSET, THE LEARNED REPRESENTATIVES OF T HE PARTIES SUBMITTED THAT THIS ISSUE IS COVERED BY VARIOUS DECISIONS OF ITAT INCLU DING DECISION OF ITAT, RAJKOT BENCH ITA NO.659/RJT/2010 ORDER DATED 11-06-2010. THE RELEVANT FINDINGS OF THE ITAT ARE REPRODUCED AS BELOW:- 5.0 WE HAVE HEARD THE RIVAL CONTENTIONS. WE FIND THAT HONBLE MADRAS HIGH COURT HAS RECENTLY DECIDED IDENTICAL IS SUE IN THE CASE OF SARANAYAKI KANNAN VS. CIT(2010) 38 DTR (MAD) 24. RELEVANT PORTION OF THE SAID JUDGMENT IS REPRODUCED HEREUNDE R: ITA 1269 TO 1272-RJT-2010. A. Y. 2007-08.. 3 3. THE LEARNED COUNSEL FOR THE ASSESSEE AS WELL AS THE REVENUE SUBMITTED THAT THE ISSUE IS NOW SQUARELY CO VERED BY THE JUDGMENT OF THE SUPREME COURT MADE IN CIVIL APPEAL NOS.6997 TO 7002 OF 2009 (CHANDRA RANGANATHAN & ORS VS. CIT] DT . 21 ST OCT., 2009. IT HAS ALSO TAKEN NOTE OF THE CIRCULAR ISSUE D BY THE CBDT. IN THE SAID JUDGMENT THE SUPREME COURT HAS OBSERVED AS FOLLOWS: DURING THE COURSE OF HEARING OF THESE APPEALS, IT WAS BROUGHT TO OUR NOTICE THAT BY THE SUBSEQUENT LETTER DT. 8 TH MAY, 2009, ISSUED BY THE CBDT. IT WAS INDICATED THAT THE MATTER HAD BEE N REVIEWED ON THE BASIS OF THE JUDGMENT OF THE BOMBAY HIGH COURT DT 4 TH JULY, 2008 IN THE CASE OF CIT VS KOODATHIL KALLYATAN AMBU JAKSHAN (2008) 219 CTR (BOM) 80 : (2008) 12 DTR (BOM) 138 AND IT W AS HELD THAT AMOUNTS RECEIVED BY RETIRING EMPLOYEES OF THE RBI W OULD BE ELIGIBLE FOR EXEMPTION UNDER THE AFORESAID PROVISIO NS OF THE IT ACT. ON BEHALF OF THE UNION OF INDIA AND THE CIT, THE RE SPONDENT HEREIN, IT WAS SUBMITTED THAT IN VIEW OF THE SAID CIRCULAR, THE RESPONDENT WOULD ALLOW THE BENEFIT OF DEDUCTION TO THE APPELLA NTS UNDER S. 10(10C) OF THE IT ACT 1961 AS FAR AS THE RETIRED EM PLOYEES OF THE RBI ARE CONCERNED. 4. THE CIRCULAR OF THE CBDT READS AS FOLLOWS: IT HAS NOW BEEN BROUGHT TO THE NOTICE OF THE BOARD THAT THE HONBLE HIGH COURT OF BOMBAY VIDE ITS ORDER DT. 4 TH JULY 2008 IN THE CASE OF CIT VS. KOODATHIL KALLYATAN AMBUJAKSHAN (2008) 219 CTR (BOM) 80 : (2008) 12 DTR (BOM) 138 HAS HELD THAT OERS OF FRBI SATISFIES ALL THE CONDITIONS OF R.2BA AND AMOUNTS R ECEIVED BY RETIRING EMPLOYEES THEREUNDER WERE ELIGIBLE FOR EXE MPTION UNDER S. 10(10C). THAT JUDGMENT HAS BECOME FINAL. 5. THUS LOOKING TO THE FACTS AND CIRCUMSTANCES OF T HE CASE AND IN VIEW OF THE ABOVE DECISIONS AND CBDT CIRCULAR WE HOLD THAT THE ASSESSEE IS ENTITLED TO THE BENEFIT OF DEDUCTION UN DER S. 10(10C) OF THE IT ACT. THIS GROUND OF THE ASSESSEE IS ALLOWED . 5. SINCE FACTS ARE IDENTICAL TO THE ABOVE CASE DECI DED BY ITAT, WE RESPECTFULLY FOLLOW THE ABOVE ORDER OF THE ITAT. WE ALLOW THE GROUND OF APPEAL RAISED BY THE ASSESSEE. ITA 1269 TO 1272-RJT-2010. A. Y. 2007-08.. 4 6.. IN THE RESULT, APPEALS ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 22-12-2011. SD/- SD/- ( T. K. SHARMA ), ( A. L. GEHLOT ), JUDICIAL MEMBER. ACCOUNTANT MEMBER. RAJKOT. DATED: 22-12-2011. NVA/ COPY TO:- 1.THE ASSESSE.. 2 THE REVENUE.. 3.THE C.I.T.(A)-II, RAJKOT. 4.THE C.I.T., RAJKOT. 5.THE D.R., ITAT, RAJKOT. TRUE COPY. BY ORDER, ASSTT. REGISTRAR, ITAT,RAJKOT.