Bhuwan Chandra Pandey, Nainital V. ACIT, Haldwani

ITA 5805/DEL/2011

• Counselvise Citation: 580520114 RSA 2011
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 26-06-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 27-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS ANUSHA KHURANA
• Assessee Lawyers: S K CHATURVEDI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH A NEW DELHI) BEFORE SHRI R.P. TOLANI , JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A. NO.5805/DEL/2011 ASSESSMENT YEAR : 2006-07 SHRI BUWAN CHANDRA PANDEY, ACIT, D-1, DAYAL VIHAR, BEHIND RTO HALDWANI. OFFICE, KUSAM KHERA, HALDWANI, NAINITAL. V. (APPELLANT) (RESPONDENT) PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO.ALBPP ALBPP ALBPP ALBPP- -- -1422 1422 1422 1422- -- -H HH H APPELLANT BY : SHRI S.K. CHATURVEDI, C.A. RESPONDENT BY : MRS. ANUSHA KHURANA, SR. DR. ORDER PER TS KAPOOR, AM: THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS DIRECTED AG AINST THE ORDER OF LD CIT(A) DATED 20.10.2011 FOR ASSESSMENT YEAR 2006-07. THE ASSESSEE WAS WORKING WITH STATE BANK OF INDIA. HE TOOK V OLUNTARY RETIREMENT UNDER THE STAFF SUPERVISING EXIT OPTION S CHEME OFFERED BY THE BANK. ALONG WITH OTHER RETIREMENT BENEFITS, HE W AS PAID EX GRATIA AMOUNTING TO ` .5 LAKHS UNDER THE SAID SCHEME AND THE ASSESSEE CLAIMED THE SAME TO BE EXEMPT U/S 10(10C) OF THE IN COME TAX ACT, 1961 WHICH WAS DISALLOWED BY THE ASSESSING OFFICER ON TH E GROUND THAT REQUIREMENTS AS ENVISAGED IN RULE 2B (I TO V) OF INCO ME TAX RULES, 1962 FOR AVAILING EXEMPTION U/S 10(10C) OF THE ACT W ERE NOT MET. 2. THE ASSESSEE FILED APPEAL BEFORE LD CIT(A) ALONG WIT H DETAILED WRITTEN SUBMISSIONS BUT LD CIT(A) HAS REJECTED THE CLAIM OF THE ASSESSEE. THE ASSESSEE IS AGGRIEVED, HENCE IN APPEAL BEFORE US. ITA NO5805/DEL/2011 2 3. BEFORE US, IT WAS CLAIMED THAT THE ISSUE RAISED BY TH E ASSESSEE IN THE PRESENT APPEAL IS COVERED IN FAVOUR OF ASSESSEE BY TH E DECISION OF ITAT IN I.T.A. NO.3152/.DEL/2010 DATED 14.1.2011 RE LATING TO JEEVAN CHANDRA KABADWAL. 4. THE LD DR, ON THE OTHER HAND, ARGUED THAT THE CA SE LAW RELIED UPON BY LD AR IS DIFFERENT AND HENCE SHE ARGUED THAT DISALLOWANCE MADE BY ASSESSING OFFICER AND UPHELD BY LD CIT(A) IS AS P ER PROVISIONS OF ACT. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS OF BOTH THE PAR TIES AND HAVE GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. WE OBSERVE FROM THE CASE LAW RELIED UPON BY THE LD AR THAT HON'BLE T RIBUNAL IN THIS CASE HAD FOLLOWED THE THIRD MEMBER DECISION IN THE CASE OF DCIT V. KRISHNA GOPAL SAHA 121 ITD 368 (CAL.) (TM) WHEREIN THE ASSESSE E WAS AN EMPLOYEE OF STANDARD CHARTERED BANK AND HAD RECEIVE D COMPENSATION OF ` .18,87,798/- AS PER EARLY SEPARATION PLAN (ESP). THE EMPLOYER VIDE THEIR LETTER DATED 14.11.2006 HAD STATED THAT EMPLOY EE AVAILING THE SAID ESP ARE NOT ELIGIBLE FOR EXEMPTION U/S 10(10C) O F THE ACT AS THE SCHEME WAS NOT INCONFORMITY WITH THE PROVISIONS OF RULE 2BA(I) TO (V). HOWEVER, THE TRIBUNAL FOLLOWING HON'BLE CALCUTTA HI GH COURT JUDGMENT IN THE CASE OF SAIL DSP VR EMPLOYEES ASSOCIATION V. UNI ON OF INDIA 262 ITR 638 (CAL.) ALLOWED THE CONTENTION OF ASSESSEE. IN T HAT CASE, THE HON'BLE HIGH COURT HAD HELD THAT AN EMPLOYEE WHO TA KES VOLUNTARY RETIREMENT IS ENTITLED TO GET EXEMPTION U/S 10(10C) O F THE ACT EVEN IF THE PAYMENT IS STRETCHED OVER A PERIOD OF YEARS AND F URTHER IT WAS HELD THAT THE PROVISIONS OF SECTION 10(10C) SHOULD BE INTER PRETED IN A MANNER BENEFICIAL TO THE OPTEE FOR VOLUNTARY RETIRE MENT. KEEPING IN VIEW THE ABOVE JUDICIAL PRONOUNCEMENT AND ON THE BA SIS OF CASE LAW RELIED UPON BY THE LD AR WE ARE OF THE CONSIDERED OP INION THAT FACTS AND CIRCUMSTANCES OF THE PRESENT CASE ARE SIMILAR TO THE FACTS OF THE CASE RELIED UPON BY LD AR. RESPECTFULLY FOLLOWING THE JUDICIAL ITA NO5805/DEL/2011 3 PRONOUNCEMENTS, WE ARE OF THE OPINION THAT COMPENSATI ON AMOUNT OF ` .5 LAKHS WAS ELIGIBLE FOR EXEMPTION U/S 10(10C) OF TH E ACT. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALL OWED. 7. ORDER PRONOUNCED IN THE OPEN COURT ON THE 9TH DA Y OF AUGUST, 2012. SD/- SD/- (R.P.TOLANI) (T.S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 9.8.2012. HMS COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DEL HI. TRUE COPY. BY ORDER (ITAT, NEW DELHI). DATE OF HEARING 26.6.2012 DATE OF DICTATION 1.8.2012 DATE OF TYPING 1.8.2012 DATE OF ORDER SIGNED BY 9.8.2012 BOTH THE MEMBERS & PRONOUNCEMENT. DATE OF ORDER UPLOADED ON NET 9.8.2012 & SENT TO THE BENCH CONCERNED.