The ITO, Ward-15(4), Ahmedabad V. Shri Nalinkumar Natverlal Parikh, Ahmedabad

ITA 3177/AHD/2009

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6419 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 24-05-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 26-11-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAI RAJ KUMAR
• Assessee Lawyers: VIVEK N CHAVDA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : AH MEDABAD ( BEFORE HONBLE SHRI T.K.SHARMA, J.M. & HONBLE SHRI A.N.PAHUJA, A.M.) I.T.A.NO. 3177/AHD./2009 : ASSESSMENT YEAR 200 7-08 ITO, WARD-15(4), AHMEDABAD VS- SHRI NALINKU MAR NATVERLAL PARIKH, ABAD (PAN : AEAPP 9436K) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI JAI RAJ KUMAR, SR. D.R. RESPONDENT BY: SHRI VIVEK N. CHAVDA, A.R. O R D E R PER SHRI T.K.SHARMA, JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER OF LD. CIT(A)-XXI, AHMEDABAD DATED 14.09.2009 FOR THE ASSESSMENT YEAR 2007-2008. 2. BRIEFLY STATED THE FACTS ARE THAT THE ASSESSEE I S AN INDIVIDUAL. HE TOOK THE VOLUNTARY RETIREMENT UNDER EXIT OPTION SCHEME OFFER ED BY THE EMPLOYER (STATE BANK OF INDIA) AND WAS AWARDED THE AMOUNT AS PER TH E AGREED TERMS. THE ASSESSEE CLAIMED THE EXEMPTION OF RS.5 LAKHS UNDER SECTION 1 0(10C) FOR THE MONEYS RECEIVED UNDER THE VOLUNTARY RETIREMENT SCHEME. IN THE RETUR N OF INCOME FILED ON 30.07.2007, HE DECLARED TOTAL INCOME OF RS.2,82,210/-. THE AO FRAM ED THE ASSESSMENT UNDER SECTION 143(3) ON 24.03.2009 WHEREIN HE DISALLOWED THE EXEM PTION OF RS.5 LAKHS UNDER SECTION 10(10C) ON THE GROUND THAT EXIT OPTION SCHE ME DOES NOT SATISFY THE GUIDELINES LAID DOWN IN RULE 2BA OF I.T. RULES, 196 2. THUS, EXEMPTION OF RS.5 LAKHS UNDER SECTION 10(10C) IS NOT AVAILABLE TO THE ASSES SEE. 3. ON APPEAL, IN THE IMPUGNED ORDER, THE LD. CIT(A) , FOLLOWING THE DECISION OF ITAT, AHMEDABAD B BENCH DATED 6.7.2007 IN ITA NO. 1514/AHD/2007 IN THE CASE OF 2 ITA NO.3177/AHD./2009 SHRI KANTILAL K. SOLANKI VS. ITO, CIRCLE-15, AHMEDA BAD WHEREIN IT HAS REPRODUCED THE FINDINGS OF THE HONBLE CALCUTTA HIGH COURT IN THE CASE OF SAIL EMPLOYEES ASSOCIATION VS- UNION OF INDIA AND OTHERS, DELETED THE ADDITION OF RS.5 LAKHS. AGGRIEVED, THE REVENUE IS IN APPEAL. 4. AT THE OUTSET, SHRI VIVEK N. CHAVDA, A.R., APPEA RED ON BEHALF OF THE ASSESSEE AND FILED A COPY OF THE DECISION OF ITAT B BENCH, AHMEDABAD IN THE CASE OF ITO- VS- SHRI VIJAYKUMAR B. BAROT IN ITA NO. 2557/AHD/20 10 WHEREIN IT WAS HELD THAT IN RESPECT OF VOLUNTARY RETIREMENT SCHEME UNDER EXIT O PTION SCHEME BY STATE BANK OF INDIA ALSO, THE EX GRATIA PAYMENT RECEIVED IS EXEMPT UNDER SECTION 10(10C) O F THE I.T.ACT, 1961. HE ACCORDINGLY CONTENDED THAT TH E VIEW TAKEN BY THE LD. CIT(A) GRANTING EXEMPTION OF RS.5 LAKHS UNDER SECTION 10(1 0C) BE UPHELD. 5. ON THE OTHER HAND, SHRI JAI RAJ KUMAR, SR.D.R., APPEARING ON BEHALF OF THE REVENUE, COULD NOT CONTROVERT THE AFORESAID CONTENT ION OF THE LD. COUNSEL OF THE ASSESSEE. 6. HAVING HEARD BOTH THE SIDES, WE HAVE CAREFULLY G ONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IT IS PERTINENT TO NOTE THAT IN THE IMPUGNED ORDER, THE LD. CIT(A) HAS FOLLOWED THE DECISION OF THE ITAT, AHMEDABAD B BE NCH DATED 6.7.2007 IN ITA NO.1514/AHD/2007 IN THE CASE OF SHRI KANTILAL K. SO LANKI ( SUPRA ). APART FROM THIS, ITAT B BENCH, AHMEDABAD IN THE CASE OF ITO-VS- SH RI VIJAYKUMAR B. BAROT IN ITA NO. 2557/AHD/2010 ALSO HELD THAT IN RESPECT OF VOLU NTARY RETIREMENT SCHEME UNDER EXIT OPTION SCHEME BY STATE BANK OF INDIA ALSO, THE EX GRATIA PAYMENT RECEIVED IS EXEMPT UNDER SECTION 10(10C) OF THE I.T.ACT, 196 1. FROM THE ABOVE, IT IS CLEAR THAT THE VIEW TAKEN BY THE LD. CIT(A), IN THE IMPUGNED O RDER, IS IN ACCORDANCE WITH THE DECISION OF THE ITAT, AHMEDABAD B BENCH DATED 6.7 .2007 IN ITA NO.1514/AHD/2007 IN THE CASE OF SHRI KANTILAL K. SO LANKI ( SUPRA ) AND ITAT B BENCH, AHMEDABAD IN THE CASE OF ITO-VS- SHRI VIJAYK UMAR B. BAROT IN ITA NO. 3 ITA NO.3177/AHD./2009 2557/AHD/2010. WE, THEREFORE, INCLINE TO UPHOLD THE ORDER OF THE LD. CIT(A). RESULTANTLY, THE APPEAL RAISED BY THE REVENUE IS DI SMISSED. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25.05.2011 SD/- SD/- (A.N.PAHUJA) (T.K.SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 25/05/2011 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEE 2) THE DEPARTMENT 3) CIT(A) CONCERNED 4) CIT CONCERNED 5) D.R., ITAT, AHMEDABAD TRUE COPY BY ORDER DEPUTY REGISTRAR, ITAT, AHMEDABAD TALUKDAR/SR.P.S.