Shri Navinchandra Ramniklal Andharia, Bhavnagar V. The Income Tax Officer, Ward-2(4), AMRELI

ITA 405/RJT/2012

• Counselvise Citation: [2012] 120 COUNSELVISE.COM (IT) 0209 (ITAT-RAJKOT)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 13-09-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 14-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: DS VARIA

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. . .. . . .. . , , , , . .. . . .. . , , , , $ $ $ $ BEFORE SHRI T. K. SHARMA, JM AND SHRI D. K. SRIVASTAV A, AM ITA NO. 405/RJT-2012. / ASSESSMENT YEAR 2007-08 NAVINCHANDRA RAMNIKLAL ANDHARIA, PLOT NO.7/10/11/D, HARI KRISHNA PARK, AERODROME ROAD, SUBHASHNAGAR, BHAVNAGAAR, PAN: ABZPA0089K ( * / APPELLANT) VS. INCOME TAX OFFICER, WARD-2(4), AMRELI. +,* / RESPONDENT -. / ASSESSEE BY SHRI D.S.VARIA . / REVENUE BY SHRI. AVINASH KUMAR . / DATE OF HEARING 13.9.2012 . / DATE OF PRONOUNCEMENT 14.09.2012 / / / / ORDER . .. . . . . . , , , , / T. K. SHARMA, J. M THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DATED 22.5.2012 OF CIT(A)- IV, RAJKOT CONFIRMING THE DISALLOWANCE OF EXEMPTION OF RS.5,00,00 0/- U/S 10 (10C) OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 200 7-08. ITA NO. 405/RJT-2012. 2 2. BRIEF FACTS RELATING TO THE CONTROVERSY INVOLVED AR E THAT THE ASSESSEE IS AN EX-EMPLOYEE OF STATE BANK OF INDIA. HE T OOK VOLUNTARY RETIREMENT UNDER EXIT OPTION SCHEME OF THE BANK. T HE RETURN OF INCOME WAS FILED ON 16.7.2007 DECLARING TOTAL INCOME AT RS.4,00,470/- INTER ALIA CLAIMING DEDUCTION OF RS.5,00,000/- U/S 10( 10C) OF THE INCOME TAX ACT, 1961. THE AO FOR DETAILED REASONS IN HIS A SSESSMENT ORDER DISALLOWED THE CLAIM OF EXEMPTION U/S 10(10C) OF THE ACT ADDED BACK RS.5,00,000/- TO THE TOTAL INCOME OF THE ASSESSEE. 3. ON APPEAL, IN THE IMPUGNED ORDER, THE LD.CIT(A) , CONFIRMED THE ACTION OF THE AO FOR THE DETAIL REASONS GIVEN THEREIN INCLUDING THE GROUND THAT THE CONDITION OF NOT FILING UP THE VACANCIES CAUSE D BY VOLUNTARY RETIREMENT U/S 2BA OF THE IT RULES IS NOT MET IN EXIT OPTION SCHEME OF SBI AND, THEREFORE, ASSESSEE IS NOT ELIGIBLE TO CLAIM E XEMPTION U/S 10(10C) OF THE ACT. AGGRIEVED WITH THE ORDER OF TH E LD. CIT(A) IS IN APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING, SHRI SHRI D.S.VARIA, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ISSUE INVOLVED IN THE PRESENT APP EAL STANDS COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVEN UE BY THE DECISION OF THE CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF DIPAKBHAI DINAKRAY SHETH V/S ITO IN ITA NO.1206/RJT/2010(AY-2 007-08) DATED 23.3.2012 IN WHICH THE TRIBUNAL HAS FOLLOWED ITS EARL IER DECISION IN THE CASE OF SHRI YUSUFBHAI R GAZIYANI V/S ITO IN ITA NO. 659/RJT/2010 (AY 2006-07) DATED 11.6.2010 AND ALLOWED THE CLAIM OF EXEMPTION U/S 10(10C) OF THE ACT. HE, THEREFORE, PLEADED THAT TH E BENEFIT OF THE ABOVE ITA NO. 405/RJT-2012. 3 DECISION OF THE TRIBUNAL BE EXTENDED TO THE PRESENT ASSESSEE AND DIRECT THE AO TO ALLOW THE CLAIM OF EXEMPTION U/S 10(10C) OF THE ACT. 5. BEFORE US, THE LD.DR RELIED ON THE REASONINGS GIVEN BY THE AO AND THE LD. CIT(A) IN THEIR RESPECTIVE ORDER. HE SUBMITT ED THAT THE ASSESSEE IS NOT ENTITLED FOR DEDUCTION OF RS.5,00,000/- U/S 10(1 0C) OF THE ACT. 6. HAVING HEARD BOTH THE PARTIES, WE HAVE CAREFULL Y GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND ALSO THE CASE LAW RELIED UPON BY THE LD. COUNSEL OF THE ASSESSEE. THE FACTS OF THE CASE OF T HE ASSESSEE ARE THAT HE IS A EX-EMPLOYEE OF STATE BANK OF INDIA. HE TOOK VOLUNTARY RETIREMENT UNDER EXIT OPTION SCHEME OF THE BANK 1.9 .2006.. IN THE ASSESSMENT YEAR UNDER APPEAL, HE FILED RETURN OF INCOME DECLARING TOTAL INCOME AT RS. 4,00,470/- AFTER CLAIMING EXEMPTION OF RS.5,00,000/- U/S 10(10C) OF THE ACT. THIS WAS DISALLOWED BY THE AO. ON FURTHER APPEAL, THE LD. CIT(A) CONFIRMED THE SAID DISALLOWANCE. WE FI ND THAT THE MAIN REASONS AS NOTED BY THE AO FOR DISALLOWING THE CLAIM U/ S 10(10C) IS THAT THIS SECTION IS NOT APPLICABLE TO THE PRESENT CASE. WE FI ND THAT THE CASE OF THE ASSESSEE IS IDENTICAL TO THAT OF SHRI YUSUFBHAI R GAZIYANI V/S ITO (SUPRA) . IN THIS CASE, ON IDENTICAL FACTS, AFTER CONSIDE RING VARIOUS CASES, IT HAS BEEN HELD THAT SHRI YUSUFBHAI R GAZIYANI IS EN TITLED TO EXEMPTION U/S 10(10C) OF THE ACT. WE ALSO FIND THAT THE RAJKOT BENCH OF THE TRIBUNAL IN THE CASE OF DIPAKBHAI DINAKRAY SHETH ( SUPRA) HAS TAKEN THE SIMILAR VIEW AND ALLOWED THE APPEAL OF THE ASSESSEE IN W HICH BOTH OF US ARE PARTIES. WE, THEREFORE, FOLLOWING THE DECISIONS OF THE CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CASES OF SHRI YSUFBHAI G AZIYANI (SUPRA) AND DIPAKBHAI DINAKRAY SHETH HOLD THAT THE ASSESSEE IS ENT ITLED TO DEDUCTION ITA NO. 405/RJT-2012. 4 OF RS.5,00,000/- U/S 10(10C) OF THE ACT AND DIRECT THE AO TO ALLOW THE SAME. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS, THER EFORE ,ALLOWED. THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON THE DAT E MENTIONED HEREINABOVE. SD SD ( .. / D. K. SRIVASTAVA) ( .. / T. K. SHARMA) / ACCOUNTANT MEMBER /JUDICIAL MEMBER 3/ ORDER DATE 14-09-2012. /RAJKOT SRL . .. . +4 +4 +4 [phone] / COPY OF ORDER FORWARDED TO:- 1. * / APPELLANT-, 2. +,* / RESPONDENT- 3. : / CONCERNED CIT. 4. :- / CIT (A). 5. 4 +, , / DR, ITAT, RAJKOT 6. / GUARD FILE. / BY ORDER , TRUE COPY SENIOR PRIVATE SECRETARY , INCOME TAX APPELLATE TRIBUNAL, RAJKOT.