REKHA ARVUBD SHENDE, THANE V. ACIT CIR 4, THANE

ITA 8708/MUM/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5803 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 11-02-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 23-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B P K PANDA
• Assessee Lawyers: SUNIL C MONE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'D' BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI SANJAY ARORA, ACCOUNTANT MEMBER ITA NO. 8708/MUM/2011 (ASSESSMENT YEAR: 2007-08) SMT. REKHA ARVIND SHENDE ACIT, CIRCLE 4 B-23, PRABHU KRIPA NAGAR THANE STEELA, VASAI (W), THANE 401202 VS. PAN - AFZPS41202D APPELLANT RESPONDENT APPELLANT BY: SHRI MANDAR VAIDYA & SHRI SUNIL C. MONE RESPONDENT BY: SHRI B.P.K. PANDA DATE OF HEARING: 11.02.2014 DATE OF PRONOUNCEMENT: 11.02.2014 O R D E R PER D. MANMOHAN, V.P. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)-II, THANE AND IT PERTAINS TO A.Y. 2007-08. 2. THOUGH NUMBER OF GROUNDS WERE URGED BEFORE US, THE LIMITED ISSUE THAT ARISES FOR OUR CONSIDERATION IS WITH REGARD TO THE ELIGIBILITY TO CLAIM EXEMPTION UNDER SECTION 10(10C) OF THE ACT ON THE A MOUNT RECEIVED BY THE ASSESSEE FROM STATE BANK OF INDIA ON THE EVE OF EOS (VRS). THE ASSESSEE OPTED FOR EXIT OPTION SCHEME OF SBI. ASSESSEE WAS E MPLOYED IN SBI FOR MORE THAN 25 YEARS. SHE OPTED FOR EXIT OPTION SCHEME AND RECEIVED EX-GRATIA PAYMENT OF ` 8,63,726/- OUT OF WHICH A SUM OF ` 5,00,000/- WAS NOT OFFERED TO TAX ON THE GROUND THAT IT IS EXEMPT UNDER SECTIO N 10(10C) OF THE INCOME TAX ACT, 1961. THE AO WAS, HOWEVER, OF THE VIEW THA T THE CLAIM OF EXEMPTION DOES NOT FULFIL THE GUIDELINES AS LAID DOWN IN RULE 2BA OF THE I.T. RULES AND, THEREFORE, BROUGHT TO TAX THE AFOREMENTIONED AMOUNT . THE LEARNED CIT(A) CONFIRMED THE ORDER PASSED BY THE AO ON THIS ASPECT AND THUS FURTHER APPEAL WAS PREFERRED BY THE ASSESSEE. 3. AT THE TIME OF HEARING THE LEARNED COUNSEL SUBMITTE D THAT THE ASSESSEE HAS FULFILLED ALL THE CONDITIONS LAID DOWN IN SECTI ON 10(10C) OF THE ACT AND IN ITA NO. 8708/MUM/2011 SMT. REKHA ARVIND SHENDE 2 FACT THE ISSUE STANDS SQUARELY COVERED BY THE DECIS ION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. KOODATHIL KALLYATAN AMBUJAKSHAN 309 ITR 113 WHEREIN SIMILAR PAYMENT RECEIVED BY THE EX-EMPLOYEES OF RESERVE BANK OF INDIA WAS TREATED AS EXEMPT BUT THE LEARNED CIT(A) SOUGHT TO DISTINGUISH THE SAME MERELY ON THE GROUND THAT I N THE AFORESTATED DECISION IT WAS A CASE OF VOLUNTARY RETIREMENT SCHE ME OF THE RBI WHEREAS IN THE INSTANT CASE THE NOMENCLATURE WAS DIFFERENT, I. E. EXIT OPTION SCHEME AND, THEREFORE, THE CONDITIONS LAID DOWN UNDER RULE 2BA ARE NOT FULFILLED. HE ALSO PLACED RELIANCE ON THE FOLLOWING DECISIONS OF THE ITAT, MUMBAI WHEREIN THE ISSUE CONCERNING EX-GRATIA AMOUNT RECEIVED BY S BI EMPLOYEES WAS CONSIDERED IN DETAIL WHILE COMING TO THE CONCLUSION THAT PROVISIONS OF SECTION 10(10C) HAS TO BE INTERPRETED LIBERALLY, IN A MANNER WHICH IS BENEFICIAL TO THE RETIRED EMPLOYEES, AND RULES ARE MERELY SUBSERVIENT TO THE PROVISIONS AND, BY ANALYSING THE PROVISIONS OF SECT ION 10(10C), IT WAS HELD THAT THE AMOUNT RECEIVED BY THE SBI EMPLOYEES SHOUL D ALSO BE TREATED AT PAR WITH THE AMOUNT RECEIVED BY THE RBI EMPLOYEES UNDER VOLUNTARY RETIREMENT SCHEME AND HENCE EXEMPTION UNDER SECTION 10(10C) OF THE ACT CANNOT BE DENIED: I. MRS. NIRMALA S. SHETTY ITA NO. 8719/MUM/2011 (AND O THERS) DATED 11.09.2013 II. SMITA ASHIK CHANSIKAR ITA NO. 8717/MUM/2011 DATED 17.12.2013 4. THE LEARNED D.R. COULD NOT PLACE ANY DECISION, OF E ITHER THE TRIBUNAL OR ANY OTHER SUPERIOR FORUM, WHEREIN A CONTRARY VIE W WAS TAKEN. THEREFORE, RESPECTFULLY FOLLOWING HE AFORESTATED DECISION WE H OLD THAT THE ASSESSEE IS ENTITLED TO EXEMPTION UNDER SECTION 10(10C) OF THE ACT TO THE TUNE OF ` 5,00,000/- AND WE DIRECT THE AO ACCORDINGLY. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH FEBRUARY, 2014. SD/- SD/- (SANJAY ARORA) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATED: 11 TH FEBRUARY, 2014 ITA NO. 8708/MUM/2011 SMT. REKHA ARVIND SHENDE 3 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) II, THANE 4. THE CIT III, THANE 5. THE DR, D BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.