ITO, New Delhi V. Shri Sanjeev Massey, New Delhi

ITA 3393/DEL/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0836 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2002-2003
• Appeal Filed On: 31-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SOBHAN KAR
• Assessee Lawyers: RATTAN SINGH YADAV

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G : NEW DELHI BEFORE SHRI A.D.JAIN, JM AND SHRI R.C.SHARMA, AM ITA NO.3393/DEL/2009 ASSESSMENT YEAR : 2002-03 INCOME TAX OFFICER, WARD-47(1), NEW DELHI. VS. SHRI SANJEEV MASSEY, C-1/201, SECTOR-16, ROHINI, DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SOBHAN KAR, SR.DR. RESPONDENT BY : SHRI RATTAN SINGH YADAV, CA. ORDER PER R.C.SHARMA, AM : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 12.5.2009 FOR AY 2002-03, WHEREIN REVENUE HAS DISPU TED DIRECTION OF CIT(A) GIVEN TO THE AO TO ALLOW EXEMPTION U/S 10(10C) OF T HE IT ACT IN RESPECT OF VRS RECEIPTS. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE WAS AN EMPLOYEE OF MARUTI UDYOG LIMITED WHO TOOK RETIREMENT UNDER THE VSS/VRS . THE ASSESSEE FILED HIS RETURN OF INCOME ON 29.3.2004 DECLARING AN INCOME O F RS.2,22,721/- CLAIMING EXEMPTION U/S 10(10C) OF THE IT ACT. THE AO SELECT ED THE CASE FOR SCRUTINY ASSESSMENT BY ISSUING STATUTORY NOTICES AND ASKED T HE ASSESSEE TO SHOW CAUSE WHY THE CLAIM OF EXEMPTION U/S 10(10C) OF THE IT ACT SH OULD NOT BE DISALLOWED. THE ASSESSEE FILED WRITTEN SUBMISSIONS, AND AFTER CONSI DERING THE SUBMISSION FILED BY THE ASSESSEE, THE AO DISALLOWED THE CLAIM OF EXEMPT ION U/S 10(10C) OF THE IT ACT ON THE GROUND THAT THE CLAIM IS NOT AS PER LAW AS T HE SAME IS NOT COVERED BY THE PROVISIONS OF SECTION 10(10C) READ WITH RULE 2BA. HE PROCEEDED TO DETERMINE THE TOTAL INCOME OF THE ASSESSEE AT RS.5,08,820/-. ITA-3393/D/2009 2 3. BY THE IMPUGNED ORDER, CIT(A) ALLOWED ASSESSEES CLAIM BY RELYING ON THE FOLLOWING DECISIONS:- (I) CIT VS. G.V.VENUGOPAL 273 ITR 307 (MAD). (II) CIT & ANOTHER VS. P.SURENDRA PRABHA 279 ITR 402 (KAR). (III) CIT VS. J.RAMAMANI 286 ITR 616 (MAD). 4. WE HAVE CONSIDERED THE RIVAL CONTENTIONS. IN VI EW OF THE DECISION IN THE CASE LAWS RELIED ON BY THE CIT(A), THE COMPENSATION RECEIVED UNDER VRS AND VSS WAS BELOW RS.5 LAKHS AND AS PER SECTION 10(10C), TH E AMOUNT RECEIVED UPTO RS.5 LAKHS IS EXEMPT FROM INCOME TAX. THE CIT(A) HAS GI VEN A CATEGORICAL FINDING THAT ALL THE CONDITIONS OF SECTION 10(10C) READ WITH RUL E 2BA ARE FULFILLED. ACCORDINGLY, ASSESSEE WAS ENTITLED FOR CLAIM OF EXE MPTION OF RS.5 LAKHS ON THE AMOUNT RECEIVED AT THE TIME OF VOLUNTARY RETIREMENT . 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON CONCLUSION OF HEARING ON 1 ST OCTOBER, 2009. SD/- SD/- (A.D.JAIN) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 01.10.2009. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR ITA-3393/D/2009 3