Meghashyam L. Gholap, Pune V. Income-tax Officer,

ITA 2224/PUN/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8450 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 24-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO. 2224/PN/2013 (ASSESSMENT YEAR : 2006-07) MEGHASHYAM L. GHOLAP, B-8, ASHTAVINAYAK STATE BANK HSG. SOC., 672, BIBWEWADI, PUNE 411 037 PAN NO. AATPG2175M .. APPELLANT VS. ITO, WARD-7(2), PUNE .. RESPONDENT ASSESSEE BY : SHRI M.K. KULKARNI DEPARTMENT BY : SHRI RAJESH DAMOR DATE OF HEARING : 30-10-2014 DATE OF PRONOUNCEMENT : 31-10-2014 ORDER PER R.S. PADVEKAR, JM : THIS APPEAL IS FILED BY THE ASSESSEE CHALLENGING TH E IMPUGNED ORDER OF THE LD.CIT(A)-III, PUNE DATED 30- 09- 2013 FOR THE A.Y. 2006-07. IN THIS CASE, THE ASSES SEE HAS TAKEN MULTIPLE GROUNDS BUT THE SHORT ISSUE IN CONTR OVERSY IS WHETHER ASSESSEE IS ENTITLED FOR EXEMPTION OF RS . 5 LAKHS U/S.10(10C) OF THE ACT ON THE COMPENSATION RECEIVED BY HIM ON ACCOUNT OF OPTING TO VOLUNTARY RETIREMENT UNDER EXIT OPTION SCHEME (EOS) FLOATED BY STATE BANK OF INDIA? 2. FACTS WHICH ARE REVEALED FROM THE RECORD AS UNDE R. THE ASSESSEE WAS THE EMPLOYEE OF STATEMENT BANK OF INDIA (IN SHORT SBI) WHO HAS OPTED FOR THE VOLUNT ARY 2 RETIREMENT AS PER THE EXIT OPTION SCHEME FLOATED BY THE SBI UNDER ITS CIRCULAR NO. CDO/P&HRD-PM/2005-06 DAT ED 29-04-2005. THE ASSESSEE CLAIMED EXEMPTION U/S.10(10C) OF THE ACT IN RESPECT OF THE COMPENSATI ON RECEIVED FOR OPTING TO TAKE VOLUNTARY RETIREMENT UN DER THE SAID SCHEME TO THE EXTENT OF RS.5 LAKHS U/S.10( 10C) OF THE ACT. THE ASSESSING OFFICER DENIED THE CLAIM OF THE ASSESSEE BY GIVING THE REASON THAT EXIT OPTION SCH EME FLOATED BY THE STATE BANK OF INDIA DOES NOT COMPLY WITH THE CONDITIONS LAID DOWN IN RULE 2BA OF THE INCOME TAX RULES. THE ASSESSEE CHALLENGED THE ACTION OF THE ASSESSING OFFICER BEFORE THE LD.CIT(A) BUT WITHOUT SUCCESS. THE LD.CIT(A) REFERRED TO HIS DECISION I N THE CASE OF ANOTHER EMPLOYEE NAMELY, SHUBHANGI VIJAY LE LE IN ITA NO.PN/CIT(A)-III/WD-6(4)/255/10-11, DATED 19 - 08-2011 AND DECLINED TO GIVE RELIEF TO THE ASSESSEE . NOW THE ASSESSEE IS IN APPEAL BEFORE US. 3. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD . THE LD. COUNSEL SUBMITS THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F THIS TRIBUNAL IN THE CASE OF ARJUN MARUTI DHUMAL VS. ITO , WARD-6(4), PUNE IN ITA NO.1857/PN/2013 ORDER DATED 22- 09-2014. THE LD. COUNSEL HAS FILED A COPY OF THE O RDER OF THIS TRIBUNAL WHICH IS PLACED ON RECORD. WE ALSO F IND THAT ON IDENTICAL SET OF FACTS THE ISSUE HAS BEEN DECIDE D IN FAVOUR OF THE ASSESSEE IN THE CASE OF MRS. KALIKA R AVINDRA MOGARE IN ITA NO.2106/PN/2013 VS. ITO, WARD-2(2), KOLHAPUR ORDER DATED 30-10-2014. IN THE SAID CASE ALSO, 3 THE ASSESSEE WAS THE EMPLOYEE OF SBI AND OPTED FOR THE VOLUNTARY RETIREMENT UNDER THE EXIT OPTION SCHEME FLOATED BY THE SBI-BANK EMPLOYER. THE ASSESSEE WAS DENIED EXEMPTION U/S.10(10C) OF THE ACT. WHEN THE MATTER REACHED THE TRIBUNAL, THE TRIBUNAL ALLOWED T HE CLAIM OF THE ASSESSEE. THE OPERATIVE PART OF THE D ECISION OF THE TRIBUNAL IS AS UNDER : 5. WE FIND THAT THIS ISSUE STANDS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE IN RESPECT OF THE ANOTHER EMPLOYEES OF THE STATE BANK OF INDIA WHO HAD OPTED FOR THE VOLUNTARY RETIREMENT UNDER THE EXIT OPTION SCH EME FLOATED BY THE SBI IN THE CASE OF ITO, WARD-2(2), KOLHAPUR VS. SHRI VIJAY GANPATRAO PATIL VIDE ITA NO.1045/PN/2011 ORDER DATED 29-08-2012. IN THE CAS E CITED (SUPRA), HE WAS ALSO AN EMPLOYEE OF THE SBI O PTED FOR THE VOLUNTARY RETIREMENT AS PER THE EXIT OPTION SCHEME (EOS) DECLARED BY THE BANK-EMPLOYER. IN THE SAID CASE, THE LD.CIT(A) HAS ALLOWED THE CLAIM OF T HE ASSESSEE BY FOLLOWING THE DECISION IN THE CASE OF KOODATHIL KALLYATAN AMBUJAKSHAN (SUPRA). SO FAR AS PRESENT ASSESSEE IS CONCERNED, WE FIND THAT THE CIT (A) KOLHAPUR HAS ADOPTED DIFFERENT APPROACH EVENTHOUGH THE ASSESSEE IS THE EMPLOYEE OF THE SBI AND OPTED FOR T HE VOLUNTARY RETIREMENT UNDER THE EOS. IN OUR OPINION , THE ASSESSEES CASE IS SQUARELY COVERED BY THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF KOODA THIL KALLYATAN AMBUJAKSHAN (SUPRA) WHICH HAS BEEN APPROVED BY THE HONBLE SUPREME COURT IN THE CASE O F CHANDRA RANGANATHA (SUPRA). IN THE CASE OF KOODA THIL KALLYATAN AMBUJAKSHAN (SUPRA), THE RESPECTIVE ASSES SEE WAS THE EMPLOYEE OF THE RBI. SO FAR AS THE SBI IS CONCERNED, TO OUR UNDERSTANDING, THE EXIT OPTION SCHEME IS ANALOGOUS TO THAT OF THE RBI. MOREOVER, IN OUR OPINION, THE EXIT OPTION SCHEME OF THE SBI CO MPLY WITH ALL THE CONDITIONS LAID DOWN IN RULE 2BA OF TH E I.T. RULES. WE, THEREFORE ALLOW THE GROUND TAKEN BY THE ASSESSEE AND DIRECT THE ASSESSING OFFICER TO ALLOW THE BASIC EXEMPTION U/S.10(10C) OF THE ACT. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. 4. WE, THEREFORE, FOLLOWING THE DECISION IN THE CAS E OF MRS. KALIKA RAVINDRA MOGARE (SUPRA) DECIDE THIS ISS UE IN FAVOUR OF THE ASSESSEE AND DIRECT THE ASSESSING OFF ICER TO ALLOW EXEMPTION U/S.10(10C) OF THE ACT TO THE ASSE SSEE 4 ON THE COMPENSATION RECEIVED ON HIS VOLUNTARY RETIR EMENT UNDER EXIT OPTION SCHEME FROM THE BANK EMPLOYER. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 31-10-2014. SD/- SD/- (R.K. PANDA) (R.S. PADVEK AR) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE DATED: 31 ST OCTOBER, 2014 SATISH COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE 2. DEPARTMENT 3. CIT(A)-III, PUNE 4. CIT-III, PUNE 5. THE D.R, A PUNE BENCH 6. GUARD FILE BY ORDER // TRUE COPY // ASSISTANT REGISTRAR, ITAT, PUNE BENCHES, PUNE