Shri Kirit Kumar D. Mehta, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-4(3), RAJKOT-GUJARAT

ITA 313/RJT/2012

• Counselvise Citation: [2012] 120 COUNSELVISE.COM (IT) 0111 (ITAT-RAJKOT)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 31-07-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 10-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: JC RANPUIRA

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. BEFORE SHRI T. K. SHARMA, JM AND SHRI A. K.GARODIA, AM ITA NO. 313/RJT/2012. / ASSESSMENT YEARS 2007-08 SHRI KIRITKUMAR DALICHAND MEHTA B/5,RAJYOG APARTMENT TAGORE ROAD, RAJKOT, PAN: AATPM3749H. ( / APPELLANT) VS. THE INCOME TAX OFFICER WARD 4(3)_, RAJKOT. / RESPONDENT / ASSESSEE BY SHRI J.C.RANPUIRA. # / REVENUE BY SHRI AVINASH KUMAR & / DATE OF HEARING 31.7.2012 & / DATE OF PRONOUNCEMENT 03..8.2012 / / / / ORDER PER T. K. SHARMA, JM THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DATED 2 9.3.2012 OF CIT(A), RAJKOT FOR THE ASSESSMENT YEAR 2007-08. 2. THE EFFECTIVE GROUND OF APPEAL RAISED BY THE ASSESSE E READS AS UNDER : 2.0 THE LD.C.I.T.(A)-III RAJKOT ERRED ON FACTS AS AL SO IN LAW IN CONFIRMING DISALLOWANCE OF EXEMPTION U/S 10(10C) OF TH E IT ACT OF RS.5,00,000/- BEING EX-GRATIA PAYMENT RECEIVED UNDER EXIT OPTION SCHEME. THE DISALLOWANCE MAY KINDLY BE DELETED 3. BRIEF FACTS RELATING TO THE CONTROVERSY INVOLVED IN GROUND ARE THAT THE ASSESSEE WAS AN EX-EMPLOYEE OF STATE BANK OF INDIA. HE OBTAINED THE VOLUNTARY RETIREMENT UNDER EXIT OPTION SCHEME O F THE BANK. IN ITA NO. 313/RJT/2012. 2 THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR UNDE R APPEAL, THE ASSESSEE RECEIVED FROM THE EMPLOYER AS EX-GRATIA PAYMENT AMOUNTING TO RS.8,53,992/-.. AFTER CLAIMING EXEMPTION OF RS.5,00 ,000/- U/S 10(10C), HE DECLARED TOTAL INCOME OF RS.4,86,630/-. THE AO, FRAMED THE ASSESSMENT U/S 143 R.W.S.147, WHEREIN HE DISALLOWED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE DEDUCTION U/S 10(10C) IS N OT AVAILABLE IN RESPECT OF THE SCHEME OF EXIT OPTION SCHEME. ON APPEA L, THE LD. CIT(A) UPHELD THE ACTION OF THE AO. AGGRIEVED BY THE ORDER OF THE LD.CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBU NAL. 4. AT THE TIME OF HEARING, THE LD. AR APPEARED ON BEHALF OF THE ASSESSEE AND POINTED OUT THAT THE ISSUE RAISED IN THESE GR OUNDS HAS BEEN CONSIDERED BY THE ITAT BENCH OF THE TRIBUNAL IN THE CASE OF SHRI YUSUFBHAI R GAZIYANI V/S ITO IN ITA NO.659/RJT/2010 (AY 2006-07) DATED 11.6.2010 WHEREIN THE AO DISALLOWED THE CLAIM ON THE GROUND THAT THE SCHEME IS NOT COVERED U/S 10(10C). IN THE SAID ORDER TH E TRIBUNAL HAS HELD THAT THE ASSESSEE IS ENTITLED TO DEDUCTION U/S 10( 10C) OF THE ACT. IN SUPPORT OF HIS SUBMISSIONS, THE LD. AR HAS PLACED A COPY O F THE DECISION OF THE TRIBUNAL DATED 11.6.2010. HE ACCORDINGLY SUBMITT ED THAT FOLLOWING THE DECISION OF THE RAJKOT BENCH OF THE TRIBUNAL IN THE CASE OF SHRI YUSUFBHAI R GAZIYANI (SUPRA) THE AO BE DIRECTED TO ALLOW DEDUCT ION U/S 10(10C) OF RS.5,00,000/-. 5. ON THE OTHER HAND, SHRI. AVINASHKUMAR, DR COULD NOT CONTROVERT THE AFORESAID SUBMISSION MADE BY THE LD.AR OF THE ASS ESSEE. 6. HAVING HEARD BOTH THE SIDES, WE HAVE CAREFULLY GON E THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IT IS PERTINENT TO NOTE THAT THE AO IN THE ITA NO. 313/RJT/2012. 3 ASSESSMENT ORDER DISALLOWED THE DEDUCTION OF CLAIM U/S 1 0(10C) OF THE ACT FOLLOWING THE ORDER OF LD.CIT(A)-III, IN THE CA SE OF ITO V/S YUSUFBHAI R GAZIYANI ORDER DATED 10.7.2009 IN APPEAL NO.CI T(A)-III/0300/08-09. THE TRIBUNAL IN THAT CASE VIDE ORDER DATED 11.6.201 0 IN ITA NO. 656/RJT/2010 (AY-2006-07) HELD THAT THE ASSESSEE IS EN TITLED TO DEDUCTION U/S 10(10C) OF THE ACT. IN THAT CASE THE RAJKOT BENCH OF THE TRIBUNAL HAS FOLLOWED THE JUDGMENT OF THE HONBLE M ADRAS HIGH COURT IN THE CASE OF SMT. SARANAYAKI KANNAN VS. ASSISTANT COMMISSIONE R OF INCOME TAX (2010) 38 DTR (MAD) 24 WHEREIN IT HAS BEEN HELD THAT THE ASSESSEE IS ENTITLED TO THE BENEFIT U/S 10(10C) OF THE A CT. THE RELEVANT PORTION OF THE JUDGMENT OF HONBLE MADRAS HIGH COU RT IN THE CASE OF SMT. SARANAYAKI KANNAN (SUPRA) IS REPRODUCED BELOW: 3. THE LEARNED COUNSEL FOR THE ASSESSEE AS WELL AS THE REVENUE SUBMITTED THAT THE ISSUE IS NOW SQUARELY COVERED BY THE J UDGMENT OF THE SUPREME COURT MADE IN CIVIL APPEAL NOS. 6997 TO 7002 OF 2009 (CHANDRA RANGANATHAN & ORS. VS. CIT ) DT. 21ST O CT., 2009. IT HAS ALSO TAKEN NOTE OF THE CIRCULAR ISSUED BY THE CBDT. I N THE SAID JUDGMENT THE SUPREME COURT HAS OBSERVED AS FOLLOWS : 'DURING THE COURSE OF HEARING OF THESE APPEALS, IT WAS BROUGHT TO OUR NOTICE THAT BY THE SUBSEQUENT LETTER DT . 8TH MAY, 2009, ISSUED BY THE CBDT, IT WAS INDICATED THAT TH E MATTER HAD BEEN REVIEWED ON THE BASIS OF THE JUDGMENT OF THE BOMBAY HIGH COURT DT. 4TH JULY 2008 IN THE CASE O F CIT VS. KOODATHIL KALLYATAN AMBUJAKSHAN (2008) 219 CTR (BO M) 80 : (2008) 12 DTR (BOM) 138 AND IT WAS HELD THAT AM OUNTS RECEIVED BY RETIRING EMPLOYEES OF THE RBI WOULD BE E LIGIBLE FOR EXEMPTION UNDER THE AFORESAID PROVISIONS OF THE I T ACT. ON BEHALF OF THE UNION OF INDIA AND THE CIT, THE RE SPONDENT HEREIN, IT WAS SUBMITTED THAT IN VIEW OF THE SAID CIRCU LAR, THE RESPONDENT WOULD ALLOW THE BENEFIT OF DEDUCTION TO TH E APPELLANTS UNDER S. 10(10C) OF THE IT ACT 1961 AS FAR AS THE RETIRED EMPLOYEES OF THE RBI ARE CONCERNED.' 4. THE CIRCULAR OF THE CBDT READS AS FOLLOWS : 'IT HAS NOW BEEN BROUGHT TO THE NOTICE OF THE BOARD THAT THE HON'BLE HIGH COURT OF BOMBAY VIDE ITS ORDER DT. 4TH JULY 2008 IN THE CASE OF CIT VS. KOODATHIL KALLYATAN AMBUJAKSHAN (2008) 219 CT R (BOM) 80 : (2008) 12 DTR (BOM) 138 HAS HELD THAT OERS OF R BI SATISFIES ALL THE CONDITIONS OF R. 2BA AND AMOUNTS RECEIVED BY R ETIRING EMPLOYEES THERE UNDER WERE ELIGIBLE FOR EXEMPTION UN DER S. 10(10C). THAT JUDGMENT HAS BECOME FINAL. ITA NO. 313/RJT/2012. 4 7. THUS LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN VIEW OF THE ABOVE DECISIONS AND CBDT CIRCULAR WE HOLD THAT TH E ASSESSEE IS ENTITLED TO THE BENEFIT OF DEDUCTION U/S 10(10C) OF T HE ACT. THESE GROUNDS OF THE ASSESSEES APPEAL ARE THEREFORE ALLOWED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED. THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON THE DAT E MENTIONED HEREINABOVE. SD/- SD/- ( A. K.GARODIA) ( T. K. SHARMA) # / ACCOUNTANT MEMBER # /JUDICIAL MEMBER +/ ORDER DATE 03-08-2012. /RAJKOT SRL - - - - .- .- .- .- / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT-, 2. / RESPONDENT- 3. 4 / CONCERNED CIT. 4. 4- / CIT (A). 5. - , , / DR, ITAT, RAJKOT 6. / GUARD FILE. / BY ORDER , SENIOR PRIVATE SECRETARY , INCOME TAX APPELLATE TRIBUNAL, RAJKOT.