KUMUD C TIKEKAR, Nagpur V. ITO, WARD- 3(2), Nagpur

ITA 147/NAG/2015

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1597 (ITAT-NAGPUR)
• Duration Of Justice: 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 30-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALLIK
• Assessee Lawyers: MAHAVIR ATALCA
• Section: 143(3)

Judgement Text

1 ITA NO .147 /NAG/2015 IN TH E INCOME TAX APPELLATE TRIBUNAL: NAGPUR BENCH [SMC] : NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER I.T.A. NO . 147 /NAG/2015 ASSESSMENT YEAR: 2008 - 09 KUMUD C TIKEKAR, 10 - B, LAXMINAGAR, NAGPUR - 25 PAN: AAGPT8803J VS THE INCOME TAX OFFICER, WARD 3(2), NAGPUR (APPELLANT) (RESPONDENT) APPELLANT BY SHRI MAHAVIR ATAL,CA RESPONDENT BY SMT. SUMAN MALLIK, JCIT DATE OF HEARING: 20 - 11 - 2015 DATE OF PRONOUNCEMENT: 24 - 11 - 2015 O R D E R PER MUKUL K. SHRAWAT, J.M. THIS APPEAL FILED BY TH E ASSESSEE ARISING FROM THE ORDER OF THE LEARNED CIT (A) - II, NAGPUR DATED 11 - 03 - 2013. GROUNDS RAISED ARE REPRODUCED BELOW: - 1. THE COMMISSIONER OF INCOME TA X (A) ERRED IN NOT ALLOWING THE EXEMPTION U/S 10(10C) DESPITE THE EXIT OPTION SCHEME DRAWN WITH A C LEAR OBJECTIVE OF REDUCTION OF MANPOWER AS STATED IN CLAUSE 1 OF THE SCHEME. 2. THE COMMISSIONER OF INCOME TA X (A) ERRED IN NOT ALLOWING THE EXEMPTION U/S 10(10C) DESPITE FINANCE MINISTRYS DECISION TO TERM THE EXIT OPTION SCHEME IS A VOLUNTARY RETIREMEN T SCHEME WHILE DECIDING THE QUESTION OF SENIOR CITIZEN INTEREST SCHEME. 3. THE COMMISSIONER OF INCOME TA X (A) ERRED IN NOT ALLOWING THE EXEMPTION U/S 10(10C) DESPITE THE CBDTS CIRCULAR DATED 8 TH MAY 2009 ACCEPTING THE BOMBAY HIGH COURT JUDGMENT. 2 ITA NO .147 /NAG/2015 4. THE C OMMISSIONER OF INCOME TA X (A) ERRED IN NOT ALLOWING THE EXEMPTION U/S 10(10C) DESPITE THE SAID SUPREME COURT OF INDIA LAYING DOWN THE LAW IN THE DECISION DATED 21 ST OCT. 2009. 5. FURTHER THE ISSUE OF EXEMPTION U/S 10(10C) TO SBI EMPLOYEES IS ALREADY COVERE D BY THE DECISION OF BOMBAY HIGH COURT REPORTED 2008: 219 CTR 80 (BOM). THIS IS HELD BY MUMBAI ITAT F BENCH VIDE ITS ORDER DT. 6.10.2009 AND ALSO BY CIT (A) - I NAGPUR IN SPECIFIC CASES OF SBI EMPLOYEES. FURTHER CIT (A) NASHIK HAS ALSO VERY CLEARLY HELD T HAT THE SBI EXIT OPTION SCHEME IS COVERED BY THE BOMBAY HIGH COURT DECISION AS ABOVE AFTER DISCUSSING THE MATTER AT LENGTH. THE COMMISSIONER OF INCOME TAX (A) ERRED IN IGNORING THESE DECISIONS. 6. THE COMMISSIONER OF INCOME TAX (A) ERRED IN NOT ALLOWING T HE CLAIM U/S 10 (10C) OF THE ACT BY MERELY RELYING ON THE LETTER OF STATE BANK OF INDIA AND NOT APPLYING HIS OWN MIND. 7. THE SBI EXIT OPTION SCHEME FOR AWARD STAFF NOWHERE STATES THE DENIAL OF EXEMPTION U/S 10(10C) AND HENCE FACTS ARE INCORRECTLY STATED WHILE PASSING THE ASSESSMENT ORDER. 8. THE COMMISSIONER OF INCOME TAX (A) ERRED IN NOT ALLOWING THE EXEMPTION U/S 10(10C) OF THE ACT BY NOT CONSIDERING THE RULE OF REVENUE WHEREIN INTERPRETATION MORE FAVOURABLE TO THE ASSESSEE SHOULD BE ALLOWED. 9. IN VI EW OF THE ABOVE GROUNDS OF APPEAL THE ASSESSEE IS ENTITLED TO RELIEF OF EXEMPTION U/S 10(10C) OF THE INCOME TAX ACT. 2. AT THE OUTSET, IT HAS BEEN BROUGHT TO THE NOTICE THAT THIS IS AN APPEAL WHICH WAS PRIMARILY FILED BY THE ASSESSEE. THIS APPEAL WAS LATE BY 720 DAYS. IT HAS ALSO BEEN INFORMED THAT THE ISSUE OF CLAIM OF DEDUCTION U/S 10(10C) OF THE IT ACT NOW STOOD COVERED BY THE TWO DECISION OF ITAT, NAGPUR BENCH. ONE SUCH DECISION IS CITED BEFORE ME NAMELY JH ANARDHAN MAHADEVRAO DHABARDE (ITA NO .20/NAG/20 12 AY 2008 - 09) ORDER DATED 08 - 05 - 2015. IT HAS ALSO BEEN NOTED THAT IN A GROUP OF SIX CASES ITAT, NAGPUR BENCH, NAGPUR IN CASE OF MADHUKAR M. KADU, ITA NO .426/NAG/2014 AY 2008 - 09. ( APPEARING AT SR. NO.1) ORDER DATED 24 - 06 - 2015 HAS ALSO CONDONED THE DELA Y AND DECIDED THE APPEAL ON MERITS. 3 ITA NO .147 /NAG/2015 3. AFTER HEARING BOTH THE SIDES, IT TRANSPIRES THAT THE ISSUE IS NOW SQUARELY COVERED. RELEVANT PORTION FROM THE DECISION OF JHANARDHAN MAHADEVRAO DHABARDE (SUPRA) IS REPRODUCED BELOW: - 2. THE UNDISPUTED FACT AS EMERGE D FROM THE CORRESPONDING ASSESSMENT ORDER PASSED UNDER SECTION 143(3) DATED 23 - 12 - 2010 IS THAT THE ASSESSEE, AN INDIVIDUAL IS AN EX EMPLOYEE OF STATE BANK OF INDIA. VIDE PARA 3 OF THE ASSESSMENT ORDER, ASSESSING OFFICER HAS MENTIONED THAT HE ASSESSEE HAD O PTED A VOLUNTARY RETIREMENT BY EXIT OPTION SCHEME OF STATE BANK OF INDIA. THE ASSESSEE HAS CLAIMED A DEDUCTION UNDER SECTION 10(10C) OF I. T. ACT OF RS.5,00,000/ - WHICH WAS DISALLOWED BY THE ASSESSING OFFICER. EVEN THE FIRST APPELLATE AUTHORITY HAD UPHEL D THE SAID DISALLOWANCE. HOWEVER, NOW BEFORE US, FEW DECISIONS OF ITAT, NAGPUR HAVE BEEN PLACED ON RECORD WHEREIN FOR ASSESSMENT YEAR 2008 - 09 THE CLAIM OF DEDUCTION IN RESPECT OF EXIT OPTION SCHEME OF STATE BANK OF INDIA WAS CONSIDER ED AND DEDUCTION WA S ALLOWED. IN A BUNCH OF 10 APPEALS, ITAT, NAGPUR BENCH, ORDER DATED 11 - 09 - 2014 (AT SR. NO. 1 ITA NO.380/NAG/2014 SHRI MANSKHLAL CHAGANLAL PARMAR) THIS ISSUE WAS CONSIDERED AND HELD THAT SUCH EMPLOYEES ARE ELIGIBLE FOR CLAIM OF DEDUCTION UNDER SECTION 10(1 0C) OF THE I. T. ACT. RESPECTFULLY FOLLOWING THIS DECISION OF THE COORDINATE BENCH, WE HEREBY DIRECT TO ALLOW THE CLAIM OF EXEMPTION AS PRESCRIBED UNDER SECTION 10(10C) OF THE I. T. ACT. GROUNDS RAISED IN THIS REGARD ARE HEREBY ALLOWED. RESULTANTLY, GROUN DS OF APPEAL OF THE ASSESSEE ARE ALLOWED. 4 . IN THE RESULT, THE APPEAL FILED BY THE ASSESEEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 24 TH DAY OF NOV., 2015. SD/ - (MUKUL K. SHRAWAT) JUDICIAL MEMBER NAGPUR, DATED: 24 TH NOV., 2015. LAKSHMIKANT DEKA/SR. PS 4 ITA NO .147 /NAG/2015 COPY FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. C.I.T., CONCERNE D 4. CIT ( APPEALS) - I, NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, NAGPU R BENCH, NAGPUR. DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 20.11.2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 23.11.2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DI SCUSSED/APPROVED BY SECOND MEMBER JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. DATE OF PRONOUNCEMENT SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER