PL.Chidambaram, Trichy V. ITO, Trichy

ITA 1735/CHNY/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7448 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 19-01-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 27-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR
• Assessee Lawyers: S KEERTHIRAJAN

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL CHENNAI C BENCH, CHENNAI. BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER & SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NO. 1735/MDS/2011 ASSESSMENT YEAR: 2004-05 PL CHIDAMBARAM, 24, YAMUNA BLOCK, VIGNESH AVENUE, PALAYAM BAZAAR, WORAIYUR, TRICHY 620 003. [PAN: AAEPC6624N] VS. THE INCOME TAX OFFICER, WARD II(2), TRICHY. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S. KEERTHIRAJAN, C.A. REVENUE BY : SHRI K.P. GOPAKUMAR, JCIT DATE OF HEARING : 19.01.2012 DATE OF PRONOUNCEMENT : 19.01.2012 ORDER PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LD. CIT(A), TIRUCHIRAPPALLI DATED 19.10.2005 IN ITA NO. 396/05-06 PASSED IN ASSESSMENT YEAR 2004-05. SHRI S. KEERTHIRAJAN, C.A. REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI K.P. GOPAKUMAR, JCIT REPRE SENTED ON BEHALF OF THE REVENUE. 2. THE SOLE GROUND OF THE APPEAL OF THE ASSESSEE IS THAT THE LD. LEARNED I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1735/M/11 1735/M/11 1735/M/11 1735/M/11 2 COMMISSIONER OF INCOME TAX(A) WAS NOT JUSTIFIED IN CONFIRMING THE ORDER OF THE ASSESSING OFFICER NOT GRANTING EXEMPTION UNDER SECTION 10(10C) OF RS.5,00,000/- TO THE ASSESSEE, WHO RETIRED FROM ICI CI BANK UNDER EARLY RETIREMENT SCHEME. 3. AT THE TIME OF HEARING, BOTH THE PARTIES BEFORE US SUBMITTED THAT THE ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY T HE DECISION OF THE HONBLE MADRAS HIGH COURT IN THE CASE OF K.R. ALAGA PPAN AND OTHERS VS. ACIT [2011] 332 ITR 517 (MAD). 4. WE FIND THAT THE HONBLE MADRAS HIGH COURT IN T HE CASE OF K.R. ALAGAPPAN AND OTHERS VS. ACIT HAS HELD AS UNDER: HELD, ALLOWING THE PETITIONS, THAT THE DIVISION BE NCH OF THE COURT HELD IN CIT V. M. CHELLADURAI [2009] 317 ITR 370 (MAD) THAT EXEMPTION UNDER SECTION 10(10C) OF THE INCOME-TAX A CT, 1961, COULD NOT BE CLAIMED BY THE EMPLOYEES OF THE ICICI BANK, WHO OPTED TO RETIRE UNDER THE VOLUNTARY RETIREMENT SCHEME OF THA T BANK. HOWEVER SUBSEQUENTLY THE SUPREME COURT HELD THAT THE ASSESS EES WERE ENTITLED TO CLAIM EXEMPTION UNDER SECTION 10(10C) OF THE ACT . HENCE, THE MATTER HAD BEEN FINALLY DECIDED BY THE SUPREME COUR T AND THEREFORE, THE PETITIONERS WERE ENTITLED TO CLAIM EXEMPTION UN DER SECTION 10(10C) OF THE ACT AND THEREFORE, THE ORDERS OF THE ASSISTA NT COMMISSIONER, REJECTING THE APPLICATIONS FOR RECTIFICATION OF THE ASSESSMENT ORDERS HAD TO BE SET ASIDE. 5. WE THEREFORE, SET ASIDE THE ORDERS OF LOWER AUT HORITIES AND VACATE THE DISALLOWANCE FOR DEDUCTION UNDER SECTION 10(10C) OF RS.5,00,000/- TO THE I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1735/M/11 1735/M/11 1735/M/11 1735/M/11 3 ASSESSEE. THE GROUND OF APPEAL OF THE ASSESSEE IS A LLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE COURT ON THE CLOSE OF HEAR ING BEFORE BOTH THE PARTIES ON 19.01.2012. SD/- SD/- (GEORGE MATHAN) JUDICIAL MEMBER (N.S.SAINI) ACCOUNTANT MEMBER CHENNAI, DATED, THE 19.01.2012 VM/- TO: THE ASSESSEE//A.O./CIT(A)/CIT/D.R.