Shri Jagdishchandra Chhaganlal Shukla, AMRELI V. The Income Tax Officer, Ward-2(4), AMRELI

ITA 406/RJT/2012

• Counselvise Citation: [2012] 120 COUNSELVISE.COM (IT) 0205 (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. 406/RJT-/2012. / ASSESSMENT YEAR 2007-08 JAGDISHCHANDRA CHHAGANLAL SHUKLA, 3, GIRIRAJ NAGAR, B/H SHIV PARK, CHITAL ROAD, AMRELI, PAN: ABOPS5534N ( * / 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. 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 ITA NO. 406/RJT-/2012. 2 RETIREMENT UNDER EXIT OPTION SCHEME OF THE BANK. T HE RETURN OF INCOME WAS FILED ON 30.5.2007 DECLARING TOTAL INCOME AT RS.1,06,950/- 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 ASSESSMENT 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, THE ASSESSEE IS NOT ELIGIBLE TO CL AIM EXEMPTION 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 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. HE PLACED ITA NO. 406/RJT-/2012. 3 A COPY OF THE TRIBUNAL ORDER IN THE CASE OF DIPAKBHAI DINAKRAY SHETH (SUPRA). 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. I N THE ASSESSMENT YEAR UNDER APPEAL, HE FILED RETURN OF INCOME DECLARIN G TOTAL INCOME AT RS. 1,06,950/- AFTER CLAIMING EXEMPTION OF RS.5,00,0 00/- U/S 10(10C) OF THE ACT. THIS WAS DISALLOWED BY THE AO. ON FURTHER AP PEAL, THE LD. CIT(A) CONFIRMED THE SAID DISALLOWANCE. WE FIND THAT THE MA IN REASONS AS NOTED BY THE AO FOR DISALLOWING THE CLAIM U/S 10(10C) IS THA T THIS SECTION IS NOT APPLICABLE TO THE PRESENT CASE. WE FIND THAT THE CASE OF THE ASSESSEE IS IDENTICAL TO THAT OF SHRI YUSUFBHAI R GAZIYANI V/S I TO (SUPRA) . IN THIS CASE, ON IDENTICAL FACTS, AFTER CONSIDERING VARIOUS CASES, IT HAS BEEN HELD THAT SHRI YUSUFBHAI R GAZIYANI IS ENTITLED TO EXEMP TION 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 SIMI LAR VIEW AND ALLOWED THE APPEAL OF THE ASSESSEE IN WHICH BOTH OF US ARE PARTIES. WE, THEREFORE, FOLLOWING THE DECISIONS OF THE CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CASES OF SHRI YSUFBHAI GAZIYANI (SUPRA) AND DIPA KBHAI DINAKRAY ITA NO. 406/RJT-/2012. 4 SHETH HOLD THAT THE ASSESSEE IS ENTITLED TO DEDUCTION O F RS.5,00,000/- U/S 10(10C) OF THE ACT AND DIRECT THE AO TO ALLOW THE SA ME. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS, THER EFORE ,ALLOWED. THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED HEREINABOVE. SD SD ( .. / D. K. SRIVASTAVA) ( .. / T. K. SHARMA) / ACCOUNTANT MEMBER /JUDICIAL MEMBER 3/ ORDER DATE -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.