ITO, Alwar V. JANSI RAM MEENA, Alwar

ITA 250/JPR/2014

• Counselvise Citation: 25023114 RSA 2014
• Duration Of Justice: 1 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 01-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA
• Assessee Lawyers: JHANSI RAM MEENA HIMSELF DH
• Keywords: Salary income; Earning of tax free income; Tax effect; Benefit of exemption
• Section: 147; 148

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 250/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2006-07 THE ITO WARD- 1 (2) ALWAR CUKE VS. SHRI JANSI RAM MEENA 198, SHANTI KUNJ ALWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AARPM 0592J VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY :SHRI O.P. BHATEJA, ADDL.CIT-DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI JHANSI RAM MEENA (ASSESSEE HIMSELF) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 21/09/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 22 /09/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A), ALWAR; DATED 24-01-2014 FOR THE ASSESSMENT YEAR 2006-07 WHEREIN THE REVENUE HAS RAISED SOLITARY GROUND AS U NDER:-. THAT THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS O N THE FACTS AND CIRCUMSTANCES OF THE CASE IN ALLOWING EXE MPTION U/S 10(10)C) OF THE I.T. ACT WITHOUT EXAMINING IF T HE SBBJ EXIT OPTION SCHEME, 2005 FULFILLED THE CONDITION LA ID OUT IN SECTION 10(10C) OF THE I.T. ACT READ WITH RU LE 2BA OF ITA NO. 250/JP/2014 ITO, WARD- 1 (2), ALWAR VS. SHRI JANSI RAM MEENA . 2 I.T. RULES, 1962 AS PROVIDED IN THE CBDT NOTIFICATI ON F.N. 200/34/2009-ITA-I DATED 6-10-2009. 2.1 BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE F ILED HIS ORIGINAL RETURN OF INCOME ON 27-06-2006 IN FORM 2E DECLARING TOTAL INCOME AT RS. 6,18,332/-AND THE SAME WAS PROCESSED U/S 143(1) OF THE ACT. SUBSEQUENTLY, THE CASE OF THE ASSESSEE WAS REOPENED BY WAY OF ISSUE OF NOTICE U/S 148 READ WITH SECTION 147 OF THE ACT ON 9-03-2011. THE AO OBSERVED THAT THE ASSESSEE IS AN INDIVIDUAL AND DER IVED INCOME FROM SALARY BEING AN EMPLOYEE OF STATE BANK OF BIKANER A ND JAIPUR. THE ASSESSEE EXITED FROM THE SERVICES OF HIS EMPLOYER U NDER THE SCHEME OF SBBJ EXIT OPTION SCHEME 2005 WHICH WAS INTRODUC ED VIDE CIRCULAR NO. PER/61/2005-06 DATED 2-12-2005 INDICAT ING UNDER CLAUSE THAT THE AMOUNT OF EX-GRATIA WILL BE ADDED TO THE I NCOME OF THE OFFICER FOR THE YEAR AND INCOME TAX WILL BE RECOVERED AT THE AP PLICABLE RATE AT SOURCE. THE AO OBSERVED THAT IN THE RETURN OF INCOME, THE A SSESSEE HAD SHOWN GROSS SALARY OF RS. 7,13,835/- AFTER WRONGLY CLAIMI NG DEDUCTION U/S 10(10C) OF THE I.T. ACT AMOUNTING TO RS. 5.00 LACS. AS PER RETURN OF INCOME, THE DATE OF BIRTH OF THE ASSESSEE IS 4-10-1 950 AND IT SHOWS THAT ASSESSEE HAS NOT GOT SUPERANNUATION AND IN THESE CI RCUMSTANCES THE ASSESSEE IS NOT ENTITLED FOR BENEFIT OF SUPERANNUAT ION EXEMPT INCOME. ITA NO. 250/JP/2014 ITO, WARD- 1 (2), ALWAR VS. SHRI JANSI RAM MEENA . 3 THUS THE ASSESSEE HAS WRONGLY CLAIMED DEDUCTION U/S 10(10C) AMOUNTING TO RS. 5.00 LACS. CONSIDERING THE CIRCULARS OF THE BANK UNDER THE SCHEME OF SBBJ EXIT OPTION SCHEME 2005 AND OTHER CASE LAWS MENTIONED IN THE ASSESSMENT ORDER, THE AO DISALLOWED THE AMOU NT OF RS. 5.00 LACS AND ADDED THE SAME TO THE TOTAL INCOME OF THE ASSES SEE FOR TAXATION FOR THE YEAR UNDER CONSIDERATION. PENALTY PROCEEDINGS U/S 2 74 READ WITH SECTION 271(1) FOR FURNISHING INACCURATE PARTICULARS OF IN COME HAD BEEN INITIATED SEPARATELY FOR WHICH NOTICE HAD BEEN ISSUED. 2.2 AGGRIEVED ASSESSEE CARRIED THE MATTER BEFORE TH E LD. CIT(A) WHO ALLOWED THE CLAIM OF THE ASSESSEE BY OBSERVING AS U NDER:- 5.3 I HAVE CONSIDERED THE DETAILED SUBMISSIONS OF THE APPELLANT AND ALSO THE ORDER OF THE AO AND FIND THAT EXEMPTION U/S 10(10C) OF THE I.T. ACT HAS BEEN DENIED BY THE AO. THE APPELLANT HAS SUBMITTED THAT AO HAS DENIED THE BENEFIT OF EXEMPTION AVAILABLE U/ S 10(10C) OF THE I.T. ACT READ WITH RULE 2BA OF THE I .T. RULES WITHOUT GOING THROUGH THE PROVISIONS OF THE SAME. THE AO HAS BLINDLY DISALLOWED THE SAME BY FOLLOWING THE CBDTS CLARIFICATION DATED 6-10-2009. 5.4 IT IS SUBMITTED THAT THE ELIGIBILITY OF EXEMPTI ON U/S 10(10C) OF THE I.T. ACT IS GOVERNED BY THE CONDITIONS STATED THEREIN AND ALSO IN RULE 2BA OF T HE I.T. RULES. AO HAS FAILED TO CONSIDER THE SBBJ EXIT SCHEME 2005 IN CONJUNCTION WITH THE PROVISIONS OF I .T. ACT AND RULES. ITA NO. 250/JP/2014 ITO, WARD- 1 (2), ALWAR VS. SHRI JANSI RAM MEENA . 4 5.5 I HAVE CAREFULLY GONE THROUGH THE LETTER OF THE CBDT DATED 6-10-2009 WHICH ONLY MANDATES THE FILED OFFICERS TO EXAMINE THE CONTENTS OF THE EXIT OPTION SCHEME FOR THE EMPLOYEES OF BANKS VIZ-A-VIZ THE PROVISIONS OF THE I.T. ACT IN THIS REGARD. THE PURP OSE BEHIND THIS IS TO EXAMINE SUCH CASES SO THAT DOUBLE DEDUCTION U/S 10(10C) OF THE I.T. ACT AND ALSO U/S 89(1) OF THE I.T. ACT MAY NOT BE CLAIMED BY THE EMPLOYEES OF SUCH BANKS. FURTHER THE CONDITIONS AS STIPULATED IN RULE 2BA READ WITH SECTION 10(10C) OF I.T. ACT MAY NOT BE COMPLIED WITH IN SOME CASES WHO WERE FOUND TO HAVE BEEN AVAILING SUCH DEDUCTIONS. HOWEVER, IT MAY BE NOTED THAT THIS EXEMPTION WOULD BE AVAILABLE TO ANY EMPLOYEE AFTER EXAMINATION OF THE FACTS OF EACH CASE. IN THIS CASE, NO SUCH VIOLATION OF THE CONDITIONS AS PROVIDED IN SECTION 10(10C) READ WITH RULE 2BA OF THE IT RULES HAVE BEEN POINTED OUT BY THE AO. 5.6 IN VIEW OF THE ABOVE DISCUSSION, SINCE THE APPELLANT FULFILLS ALL THE CONDITIONS AS PROVIDED F OR IN SECTION 10(10C) OF THE I.T. ACT READ WITH RULE 2BA OF THE I.T. RULES, THERE IS NO GROUND FOR WITHHOLDING THE EXEMPTION AS PROVIDED U/S 10(10C) OF THE I.T. ACT. THUS THE ADDITION OF RS. 5.00 LACS MADE BY THE AO O N ACCOUNT OF DISALLOWANCE OF EXEMPTION U/S 10(10C) O F THE I.T. ACT IS DELETED. 2.3 THE LD. DR RELIED ON THE ORDER OF THE AO. 2.4 DURING THE COURSE OF HEARING, THE ASSESSEE CONT ENDS THAT:- (I) THE REVENUE APPEAL IS NOT MAINTAINABLE IN TERMS OF CBDT INSTRUCTION NO.3/2011/F.N.279/MISC/142/2007/IT J DATED 9-02-2011 WHEREIN IF THE TAX EFFECT IS LESS T HAN RS. 3.00 LACS THEN THE APPEAL OF THE DEPARTMENT IS NOT MAINTAINABLE. ITA NO. 250/JP/2014 ITO, WARD- 1 (2), ALWAR VS. SHRI JANSI RAM MEENA . 5 (II) ON MERITS ALSO, SIMILAR ISSUE PERTAINING TO DE LETION OF ADDITION OF RS. 5.00 LACS MADE ON ACCOUNT OF DISAL LOWANCE OF EXEMPTION CLAIMED U/S 10(10C) OF I.T. ACT HAS BE EN DECIDED IN FAVOR OF THE ASSESSEE BY A CONSOLIDATED ORDER DECIDED BY ITAT JODHPUR BENCH VIDE ITS ORDER DATED 5-08- 2014 IN THE CASES OF ITO , WARD- 1(3) VS. SHRI GOPA L SONGARA (ITA NO. 284.JODH/2014) AND ITO WARD- 1(3) VS. SHRI DEVENDRA KUMAR JAIN (ITA NO. 285/JODH/2014) OBSERVING THEREIN AS UNDER:- AFTER CONSIDERING THE SUBMISSIONS OF THE LD. DR AND THE MATERIAL ON RECORD, IT IS NOTICED THAT T HE LD. CIT(A) DELETED THE ADDITION MADE BY THE ASSESSI NG OFFICER BY FOLLOWING VARIOUS DECISIONS GIVEN BY THE DIFFERENT BENCHES OF ITAT AS WELL AS HON'BLE MUMBA I HIGH COURT, WE THEREFORE, DO NOT SEE ANY INFIRMITY IN THE IMPUGNED ORDER PASSED BY LD. CIT(A) AND ACCORDINGLY DO NOT SEE ANY MERIT IN THESE APPEALS O F THE DEPARTMENT. 2.5 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD; LD. CIT(A) HAS TAKEN INTO CONS IDERATION ALL THE ASPECTS AS TO DELETION OF THE DISALLOWANCE WHICH IS IN CONFORMITY WITH ITAT JODHPUR BENCH DISMISSING REVENUE APPEALS IN TH E CASES OF ITO VS. SHRI GOPAL DAS SONGARA AND SHRI DEVENDRA KUMAR JAIN (SUPRA). FOLLOWING THE DECISION OF COORDINATE ITAT JODHPUR B ENCH, THE ORDER OF LD. CIT(A) IS UPHELD AND THE REVENUE APPEAL IS DISM ISED. 2.6 APART FROM MERITS TAX EFFECT IN THIS REVENUE AP PEAL BEING LESS THAN 3 LACS THE SAME IS NOT MAINTAINABLE ALSO. ITA NO. 250/JP/2014 ITO, WARD- 1 (2), ALWAR VS. SHRI JANSI RAM MEENA . 6 3.0 IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISM ISSED ON BOTH THE COUNTS. ORDER PRONOUNCED IN THE OPEN COURT ON 22/09/20 15 SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 22 /09/ 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ITO, WARD- 2 (1), ALWAR 2. IZR;FKHZ@ THE RESPONDENT- SHRI JANSI RAM MEENA, ALWAR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 250/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR