M.S.Mohan, Erode V. ITO, Erode

ITA 1654/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64394 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 24-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAJI P J ACOB IRS ACIT
• Assessee Lawyers: S SRIDHAR
• Keywords: Benefit of exemption
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.1653(MDS)/2012 & S.P. NO.96(MDS)/2012 ASSESSMENT YEAR : 2007-08 SHRI M.NATARAJAN, RAJA BHAVANAM, 5-MEKKEN ST., BHAVANI P.O., ERODE-638 301. PAN ABUPN0845M. VS. THE INCOME-TAX OFFICER, WARD II(4), ERODE. (APPELLANT/PETITIONER) (RESPONDENT) AND ITA NO.1654(MDS)/2012 & S.P. NO.97(MDS)/2 012 ASSESSMENT YEAR : 2007-0 8 SHRI M.S.MOHAN, THE INCOME-TAX OFFICER, 42-STATE BANK NAGAR, VS. WARD I I(4), MOOLAPALAYAM, ERODE-638002. ERODE. PAN AERPM4352G. (APPELLANT/PETITIONER) (RESPONDENT) APPELLANTS BY : SHRI S.SRIDHAR, AD VOCATE RESPONDENT BY : SHRI SHAJI P JACOB, IR S, ACIT DATE OF HEARING : 5 TH OCTOBER, 2012 DATE OF PRONOUNCEMENT : 5 TH OCTOBER, 2012 - - ITA 1653 & 1654 OF 2012 2 O R D E R PER DR.O.K.NARAYANAN, VICE PRESIDENT THESE TWO APPEALS ARE FILED BY THE ASSESSEES FOR THE ASSESSMENT YEAR 2007-08. THE APPEALS ARE DIRECTED AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-I AT COIMBATORE, BOTH DATED 9-7-2012. THE APPEALS ARISE OUT OF THE ASSESSMENTS COMPLETED UNDER SECTION 143(3), READ WI TH SECTION 147 OF THE INCOME-TAX ACT, 1961 AND AGITATE AGAINST THE DENIAL OF EXEMPTION UNDER SECTION 10(10C) OF THE ACT. 2. THE ASSESSEES HEREIN HAVE SOUGHT FOR EXEMPTION UNDER SECTION 10(10C), ON THE GROUND THAT THEY ARE ENTITLED FOR THE BENEFIT ARISING OUT OF THE SCHEME OF VOLUNTARY RETIREMENT FRAMED BY THEIR EMPLOYEES. BUT THIS CLAIM WAS DENI ED BY THE ASSESSING AUTHORITY ON THE GROUND THAT THE SCHEME W AS NOT IN ACCORDANCE WITH RULE 2BA OF THE INCOME-TAX RULES, 1 962. THE ORDERS OF THE ASSESSING AUTHORITY ON THIS POINT HAV E BEEN - - ITA 1653 & 1654 OF 2012 3 CONFIRMED BY THE COMMISSIONER OF INCOME-TAX(APPEALS ) AND, THEREFORE, THE SECOND APPEALS BEFORE US. 3. THE ASSESSEES ARE RETIRED EMPLOYEES OF THE STA TE BANK OF INDIA. THEY OPTED FOR EXIT OPTION SCHEME AND SOUGHT VOLUNTARY RETIREMENT. 4. THE INCOME-TAX APPELLATE TRIBUNAL, AHMEDABAD BENCH-A, HAS CONSIDERED A VERY SIMILAR CASE IN THE CASE OF SMT. SHAKUNTLABEN NAGINKUMAR SHAH VS. ITO, IN THEIR ORDE R DATED 31-8-2010 PASSED IN ITA NO.537/AHD/2010. IN THE SA ID ORDER THE TRIBUNAL HAS CONSIDERED THE CASE OF A SIMILAR E MPLOYEE RETIRED FROM THE SAME STATE BANK OF INDIA. AFTER C ONSIDERING THE RELEVANT BINDING JUDGMENTS AS ALSO THE JUDGMENT OF THE HONBLE MADRAS HIGH COURT IN THE CASE OF CIT VS. G.V.VENUGO PAL, 273 ITR 307, THE TRIBUNAL HELD THAT THE ASSESSEE IN THE SAID CASE WAS ENTITLED FOR THE EXEMPTION UNDER SECTION 10(10C ) OF THE ACT. THE VERY SAME VIEW HAS BEEN TAKEN BY THE INCOME-TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH IN THE CASE OF ASAPU BABU RAO, THROUGH THEIR ORDER DATED 5-1-2011 IN ITA NO.516/VI ZAG/ 2010. A - - ITA 1653 & 1654 OF 2012 4 SIMILAR VIEW HAS BEEN TAKEN BY THE INCOME-TAX APPEL LATE TRIBUNAL, AHMEDABAD BENCH-B IN THE CASE OF ITO VS. SHRI VIJAYKUMAR B.BAROT, THROUGH THEIR ORDER DATED 11-2- 2011, PASSED IN ITA NO.2557/AHD/2010. IT IS NEEDLESS TO SAY THA T ALMOST ALL THE BENCHES OF THE TRIBUNAL IN INDIA HAVE TAKEN SUC H A CONSISTENT VIEW THAT, IN THE GIVEN CIRCUMSTANCES, T HE ASSESSEES ARE ENTITLED FOR THE BENEFIT AVAILABLE UNDER SECTIO N 10(10C) OF THE ACT. 5. FOLLOWING THE CONSISTENT VIEW TAKEN BY THE TRIB UNAL IN VARIOUS CASES, INCLUDING THE CASES MENTIONED ABO VE, WE FIND THAT THERE IS NO GROUND IN THESE CASES FOR THE LOWE R AUTHORITIES TO DENY THE ASSESSEES THE EXEMPTION AVAILABLE UNDER SE CTION 10(10C) OF THE ACT. 6. THE ORDERS OF THE LOWER AUTHORITIES ON THIS POI NT ARE SET ASIDE. THE ASSESSING AUTHORITY IS DIRECTED TO REDO THE ASSESSMENTS AFTER GIVING THE ASSESSEES THE BENEFIT OF EXEMPTION AVAILABLE UNDER SECTION 10(10C) OF THE ACT. - - ITA 1653 & 1654 OF 2012 5 7. IN VIEW OF THE ABOVE ORDER, THE STAY PETITIONS FILED BY THE ASSESSEES HAVE BECOME INFRUCTUOUS. 8. IN RESULT, THE APPEALS FILED BY THE ASSESSEES A RE ALLOWED AND THE STAY PETITIONS ARE DISMISSED AS INF RUCTUOUS. ORDERS PRONOUNCED IN THE OPEN COURT AT THE TIME O F HEARING ON FRIDAY, THE 5 TH OF OCTOBER, 2012 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED, THE 5 TH OCTOBER, 2012. V.A.P. COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GF.