Durga Madhab Bose, Bhubaneswar V. ITO, Bhubaneswar

ITA 434/CTK/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65157 (ITAT-CUTTACK)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-11-2012
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 24-07-2012
• Court: TRIBUNAL
• Department Lawyers: S C MOHANTY
• Assessee Lawyers: D K SETH

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK ( ) BEFORE . . , , HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER. /AND . . . , S HRI K.S.S.PRASAD RAO, JUDICIAL MEMBER / I.T.A.NO. 434/CTK/2012 / ASSESSMENT YEAR 2006 - 07 DURGA MADHAB BOSE, PLOT NO.869/9, DR.ALKA DAS LANE, MAHATABROAD, BHUBANESWAR 751 002. PAN: ABEPB 0875F - - - VERSUS - INCOME - TAX OFFI CER, WARD 2(1), CUTTACK. ( /APPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI D.K.SETH, AR / FOR THE RESPONDENT: / SHRI S.C.MOHANTY, DR / DATE OF HEARING: 02.11.2012 / DATE OF PRONOUNCEMENT: 09.11.2012 / ORDER . . . , SHRI K.S.S.PRASAD RAO, JUDICIAL MEMBER . THIS IS AN APPEAL FILED BY THE HAVING BEEN AGGRIEVED BY THE ORDER DT.7.10.2009 OF THE COMMISSIONER OF INCOME - TAX ( APPEALS) FOR THE ASSESSMENT YEAR 2006 - 07. 2. THE ONLY ISSUE INVOLVE IN THE PRESENT APPEAL IS AGAINST DISALLOWANCE OF THE CLAIM OF EXEMPTION U/S.10(10C) OF THE I.T.ACT,1961. 3. BOTH THE PARTIES WERE HEARD REGARDING THE ISSUE RAISED BY THE ASSESSEE AND ITS L EGAL IMPLICATIONS. 4. ON CAREFUL CONSIDERATION OF THE MATERIAL MADE AVAILABLE TO THE TRIBUNAL AND ANALYZING THE SAME IN THE LIGHT OF THE SUBMISSIONS OF BOTH THE PARTIES, THE UNDISPUTED FACTS RELATING TO THE ISSUE ARE THAT THE ASSESSEE WAS AN EMPLOYEE OF ST ATE BANK OF INDIA. DURING THE ASSESSMENT YEAR UNDER CONSIDERATION THE ASSESSEE RECEIVED 7,93,250 AS EXGRATIA AGAINST VOLUNTARY RETIREMENT FROM SERVICE AND CLAIMED DEDUCTION U/S.10(10C) AMOUNT TO I.T.A.NO. 434/CTK/2012 2 5,00,000. THE ASSESSING OFFICER INITIATED PROCEEDINGS U/S.1 47 AND SERVED NOTICE U/S.148 ON THE ASSESSEE BUT, AS OBSERVED BY THE ASSESSING OFFICER IN HIS ORDER, THERE WAS NO COMPLIANCE FROM THE ASSESSEE TO THE SAID NOTICE, WHICH RESULTED IN PASSING THE ASSESSMENT U/S.144 OF THE I.T.ACT BRINGING TO TAX THE AMOUNT OF EX - GRATIA PAYMENT RECEIVED BY THE ASSESSEE RELYING ON THE E - CIRCULAR OF STATE BANK OF INDIA, CORPORATE CENTRE, MUMBAI (P & HRD), SL.NO.42/2005 - 06, CIRCULAR NO.CDO/P& HRD - PM./8/2005 - 06, FRIDAY , 29, 2005. 5. AGGRIEVED, THE ASSESSEE PREFERRED APPEAL BEFORE THE LEARNED CIT(A), WHO AFTER CONSIDERING THE FACTS AND CIRCUMSTANCES AND SUBMISSIONS OF THE ASSESSEE CONFIRMED THE ACTION OF THE ASSESSING OFFICER, AGAINST WHICH THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMIT TED AND THE LEARNED DR DID NOT DISPUTE THAT THE ISSUE IS COVERED BY THE DECISION OF THIS BENCH OF ITAT IN THE CASE OF NURUL HODA V. ITO IN ITA NO.231/CTK/2010 DT.12.11.2010, WHEREIN ON CONSIDERATION OF THE IDENTICAL ISSUE AS IN THE PRESENT CASE, THIS BENCH OF ITAT HAS DIRECTED THE ASSESSING OFFICER TO GRANT EXEMPTION U/S.10(10C). THE RELEVANT PARAGRAPH 5 THEREIN IS REPRODUCED AS UNDER : 5. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE ARE INCLINED TO HOLD THAT TH E ISSUE IS SQUARELY COVERED BY AN EARLIER DECISION OF THE COORDINATE BENCH IN THE CASE OF RATAN KISHORE DEY V. ITO IN ITA NO.281/CTK/2010 FOR THE ASSESSMENT YEAR 2007 - 08 WHEREIN IT HAS BEEN SPECIFICALLY MENTIONED THAT THE AMOUNT PAID ON THE EXIT OPTION SCH EME OF THE BANK COMPLIED TO THE PROVISIONS OF GRANTING OF EXEMPTION U/S.10(10C). OBVIOUSLY THE AMOUNT PAID WAS TO BE CONSIDERED FOR MORE THAN 12 MONTHS FOR CONSIDERATION FOR RELIEF U/S.89(1), THEREFORE, CLINCHES THE ISSUE IN FAVOUR OF THE ASSESSEE THAT THE AMOUNT ITSELF WAS FIT FOR CLAIMING EXEMPTION I.T.A.NO. 434/CTK/2012 3 U/S.10(10C). IN VIEW OF THE MATTER, THE FACTS OF THE ASSESSEES CASE ARE SQUARELY APPLICABLE AS WAS CONSIDERED BY HONBLE MADRAS HIGH COURT IN THE CASE OF V. M. CHELLADURAI (317 ITR 370) AND ALSO IN THE CASE OF V. G. V. VENUGOPAL [2005] 273 ITR 307 (MAD). FINDING NO INFIRMITY IN THE CONTENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED AND THE ASSESSING OFFICER IS DIRECTED TO GRANT EXEMPTION U/S.10(10C). ISSUE BEING I DENTICAL IN THE PRESENT CASE, BY FOLLOWING OUR EARLIER ORDER AS STATED EARLIER, WE SET ASIDE THE ORDER OF THE LEARNED CIT(A) ON THIS ISSUE AND DIRECT THE ASSESSING OFFICER TO GRANT EXEMPTION U/S.10(10C) AS CLAIMED BY THE ASSESSEE IN ACCORDANCE WITH LAW. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. SD/ - SD/ - ( . . ) , , (K.K.GUPTA), ACCOUNTANT MEMBER. ( . . . ) , (K.S.S.PRASAD RAO), JUDICIAL MEMBER ( ) DATE: 09.11.2012 - COPY OF THE ORDER FORWARDED TO: 1 . / THE APPELLANT : DURGA MADHAB BOSE, PLOT NO.869/9, DR.ALKA DAS LANE, MAHATABROAD, BHUBANESWAR 751 002 2 / THE RESPONDENT: INCOME - TAX OFFICER, WARD 2(1), CUTTACK. 3 . / THE CIT, 4 . ( )/ THE CIT(A), 5 . / DR, CUTTACK BENCH 6 . GUARD FILE . / TRUE COPY, / BY ORDER, ( ), (H.K.PADHEE), SENIOR.PRIVATE SECRETARY. I.T.A.NO. 434/CTK/2012 4 APPENDIX XVII SEAL TO BE AFFIXED ON THE ORDER SHEET BY THE SR. P.S./P.S. AFTER DICTATION IS GIVEN 1. DATE OF DICTATION 08.11.2012 . 2. DATE ON WHI CH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 08.11.2012 OTHER MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S . 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 09.11.2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ................ 9. DATE OF DESPATCH OF THE ORDER ..