REENA DENIS DISILVA, THANE V. ITO 4(4), MUMBAI

ITA 8718/MUM/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75677 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 12-02-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 26-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B P K
• Assessee Lawyers: SUNIL C MONE
• Section: 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D, MUMBAI BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NO. 8718/MUM/2011 ASSESSMENT YEAR: 2008-09 REENA DENIS DISILVA FRANSTEL, PRABHU ALI, NEAR MAIDEO WADA, PARNAKA, VASAI (W), DIST. THANE 401 201 VS. ITO 4(4) THANE (APPELLANT) (RESPONDENT) PERMANENT ACCOUNT NO. :- ABKPD 9293 K APPELLANT BY : SHRI MANDAR VAIDYA & SHRI SUNIL C. MONE RESPONDENT BY : SHRI B.P.K. PANDA DATE OF HEARING : 12.02.2014 DATE OF PRONOUNCEMENT : 21.02.2014 O R D E R PER DR. S.T.M. PAVALAN, JM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD.CIT(A)-2, THANE DATED 29.08.2011 FOR THE ASSESSM ENT YEAR 2008-09. 2. IN THIS APPEAL, THE ASSESSEE HAS AGITATED THE AC TION OF THE LD.CIT(A) IN CONFIRMING THE ORDER OF THE AO IN NOT ALLOWING THE EXEMPTION CLAIMED BY THE ASSESSEE U/S 10(10C) OF THE INCOME TAX ACT. 3. THE RELEVANT FACTS ARE THAT THE ASSESSEE, AN IND IVIDUAL, EX-SBI EMPLOYEE OPTED FOR SBI EXIST OPTION SCHEME, DURING THE ASSES SMENT YEAR UNDER CONSIDERATION, WHILE DECLARING A TOTAL INCOME AT RS.418350/- HAD D ISCLOSED A RECEIPT OF RS.680164 ON ACCOUNT OF EX GRATIA PAYMENT ON BEING OPTED FOR VRS SCHEME INTRODUCED BY THE EMPLOYER I.E. SBI. ACCORDINGLY, THE ASSESSEE HAD CL AIMED RS.5 LAKHS AS EXEMPT U/S 10(10C) OF THE INCOME TAX ACT. IN THE ASSESSMENT FR AMED, THE AO DISALLOWED THE CLAIM OF THE ASSESSEE AS THE SAME DID NOT QUALIFY F OR EXEMPTION U/S 10(10C) OF THE ITA NO. 8718/MUM/2011 REENA DENIS DISILVA ASSESSMENT YEAR: 2008-09 2 ACT. ON APPEAL, THE LD.CIT(A) CONFIRMED THE SAID DI SALLOWANCE/ADDITION MADE BY THE AO AS THE EXIT OPTION SCHEME OF THE SBI WAS NOT IN ACCORDANCE WITH THE GUIDELINES FRAMED UNDER RULE 2BA OF THE INCOME TAX RULES. AGGR IEVED BY THE IMPUGNED ORDER, THE ASSESSEE IS IN APPEAL BEFORE US. 4. HAVING HEARD BOTH THE SIDES AND PERUSED THE MATE RIAL ON RECORD IT IS PERTINENT TO MENTION THAT THE ISSUE OF ALLOWABILITY OF THE IM PUGNED DEDUCTION IS COVERED BY NUMBER OF DECISIONS IN FAVOUR OF THE ASSESSEE. SOME OF THE DECISIONS ARE AS FOLLOWS:- BIKRAM JIT PASSI IN ITA NO. 925/CHD/2011 FOR A.Y. 2008-09 VIDE ORDER DATED 09.11.2011 PANDYA VINODCHANDRA BHOGILAL 133 TTJ 2513, ORDER DA TED 30.07.2010 VILAS SUDAM SAWANT IN ITA NO.6016/M/2007 FOR A.Y. 2 006-07, ORDER DATED 06.10.2008 MARUTI SOMAPPA GHEJI IN ITA NO. 578/PN/2010 FOR A.Y . 2007-08, ORDER DATED 28.09.2010 SHRI ROHITKUMAR KANTILAL IN ITA NO. 969/AHD/2010 FO R A.Y. 2008- 09, ORDER DATED 05.05.2011 ASAPU BABU RAO IN ITA NO. 516/VIZAG/2010 FOR A.Y. 2 007-08, ORDER DATED 05.01.2011 KEERI SATYA VEERBHADRA RAO IN ITA NO. 491/VIZAG/201 0 FOR A.Y. 2007-08, ORDER DATED 24.01.2011 UMA SUBRAMANIAN IN ITA NO. 3120/MUM/2012 FOR A.Y. 2 008-09, ORDER DATED 10.08.2012 THE RATIOS LAID DOWN IN THE ABOVE CASES SUPPORT THE PROPOSITION THAT THE PROVISIONS OF SECTION 10(10C) IS TO BE INTERPRETED LIBERALLY I N THE MANNER WHICH IS BENEFICIAL TO RETIRED EMPLOYEES AND THE ASSESSEE IS NOT ONLY ENTI TLED TO EXEMPTION U/S 10 (10C) BUT ALSO REBATE U/S 89 OF THE INCOME TAX ACT. IN VI EW OF THE FACT THAT THE DECISIONS REFERRED ABOVE ARE FULLY APPLICABLE TO THE FACTS OF THE PRESENT ASSESSEE, WE DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. ACCORDINGLY, THE ASSESSEE IS ENTITLED FOR THE ALLOWABILITY OF THE CL AIM U/S 10(10C). 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST DAY OF FEBRUARY 2014. SD/- SD/- (SANJAY ARORA) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 21.02.2014. *SRIVASTAVA ITA NO. 8718/MUM/2011 REENA DENIS DISILVA ASSESSMENT YEAR: 2008-09 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR D BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.