Appeal details
Counselvise Citation
[2012] 140 COUNSELVISE.COM (IT) 60072 (ITAT-RAJKOT)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 1 month(s) 7 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
30-01-2012
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Next Hearing Date
16-01-2012
Assessment Year
2007-2008
Appeal Filed On
23-12-2010
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI T.K. SHARMA (JM) AND SHRI A.L. GEHLOT ( AM) ITA NO. 1348/RJT/2010 (ASSESSMENT YEARS: 2007-08) RANJAN S. SHAH, VIVEKANAND SOCIETY, AIRPORT ROAD, RAJKOT PAN : ACMPR6872P V/S THE ASSISTANT COMMISSIONER OF INCOME TAX, RANGE-4, RAJKOT (APPELLANT) (RESPONDENT) DATE OF HEARING : 19/01/2012 DATE OF PRONOUNCEMENT : 30/01/2012 APPELLANT BY SHRI D.M. RINDANI, C.A. RESPONDENT BY SHRI M.K. SINGH, D.R. O R D E R PER T.K. SHARMA, J.M. AGGRIEVED WITH THE ORDER OF THE LD. CIT(A)-III, RA JKOT ASSESSEE IS IN APPEAL BEFORE THE I.T.A.T. ON THE FOLLOWING GROUND. THE LEARNED CIT(A) III, RAJKOT ERRED IN CONFIRMIN G THE ORDER OF ASSESSMENT REJECTING THE CLAIM OF RS. 5,00,000/- FOR EXEMPTION U/S. 10(10C) OF THE ACT IN RESPECT OF THE AMOUNT RECEIVED BY THE APPELLANT UNDER STATE BA NK OF SAURASHTRA EXIT OPTION SCHEME. 2. AT THE OUTSET, THE LEARNED REPRESENTATIVES OF TH E PARTIES SUBMITTED THAT THIS ISSUE IS COVERED BY VARIOUS DECISIONS OF ITAT INCLUDING DECI SION OF ITAT, RAJKOT BENCH ITA NO.659/RJT/2010 ORDER DATED 11-06-2010. THE RELEVAN T FINDINGS OF THE ITAT ARE REPRODUCED AS BELOW:- 5.0 WE HAVE HEARD THE RIVAL CONTENTIONS. WE FIND T HAT HONBLE MADRAS HIGH COURT HAS RECENTLY DECIDED IDENTICAL ISSUE IN THE C ASE OF SARANAYAKI KANNAN VS. CIT(2010) 38 DTR (MAD) 24. RELEVANT PORTION OF THE SAID JUDGMENT IS REPRODUCED HEREUNDER: ITA NO 1348/RJT/2010 A.Y. 20 07-08. 2 3. THE LEARNED COUNSEL FOR THE ASSESSEE AS WELL AS THE REVENUE SUBMITTED THAT THE ISSUE IS NOW SQUARELY COVERED BY THE JUDGMENT OF TH E SUPREME COURT MADE IN CIVIL APPEAL NOS.6997 TO 7002 OF 2009 (CHANDRA RANG ANATHAN & ORS VS. CIT] DT. 21 ST OCT., 2009. IT HAS ALSO TAKEN NOTE OF THE CIRCULAR ISSUED 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 BEEN REVIEWED ON THE BASIS OF T HE JUDGMENT OF THE BOMBAY HIGH COURT DT 4 TH JULY, 2008 IN THE CASE OF CIT VS KOODATHIL KALLYATA N AMBUJAKSHAN (2008) 219 CTR (BOM) 80 : (2008) 12 DTR (BOM) 138 AND IT WAS HELD THAT AMOUNTS RECEIVED BY RETIRING EMPLOYEES OF THE RBI WOULD BE ELIGIBLE FOR EXEMPTION UNDER THE AFORESAID PROVISIONS OF THE IT ACT. ON BEHALF OF THE UNION OF INDIA AND THE CIT, THE RESPONDENT HEREIN, IT WAS SU BMITTED THAT IN VIEW OF THE SAID CIRCULAR, THE RESPONDENT WOULD ALLOW THE BENEFIT OF DEDUCTION TO THE APPELLANTS UNDER S. 10(10C) OF THE IT ACT 1961 AS FAR AS THE R ETIRED EMPLOYEES 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 : (20 08) 12 DTR (BOM) 138 HAS HELD THAT OERS OF FRBI SATISFIES ALL THE CONDIT IONS OF R.2BA AND AMOUNTS RECEIVED BY RETIRING EMPLOYEES THERE UNDER WERE ELI GIBLE FOR EXEMPTION 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 UNDER S. 10(10C) OF THE IT ACT . THIS GROUND OF THE ASSESSEE IS ALLOWED. 3. SINCE FACTS ARE IDENTICAL TO THE ABOVE CASE DEC IDED BY ITAT, WE RESPECTFULLY FOLLOW THE ABOVE ORDER OF THE ITAT. WE HELD THAT TH E ASSESSEE IS ENTITLED TO THE BENEFIT OF DEDUCTION U/S. 10(10C) OF THE I.T.ACT AND DIRECT T HE ASSESSING OFFICER TO ALLOW THE SAME. 5. IN THE RESULT FOR STATISTICAL PURPOSE APPEAL OF ASSESSEE IS ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON __30/01/20 12 __ . SD/- SD/- ( A.L. GEHLOT) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER ITA NO 1348/RJT/2010 A.Y. 20 07-08. 3 DATE: RAJKOT PIK/- COPY FORWARDED TO, 1. SHRI RANJAN S. SHAH, RAJKOT 2. THE ASSISTANT COMMISSIONER OF INCOME TAX, RANGE- 4, RAJKOT 3. THE CIT-II, RAJKOT 4. THE CIT(A)-III, RAJKOT 5. THE D.R., I.T.A.T., RAJKOT 6. THE GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR
