NARAYANA SWAMY RAJESH,PALAKKAD V. CENTRALISED PROCESSING CENTRE,INCOME TAX DEPARTMENT, BANGALORE

ITA 194/COCH/2024

AI Insights

The case involves Narayana Swamy Rajesh, an individual who derived income under the head 'Salary' and filed an appeal against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2020-21. The dispute centered on the denial of relief under section 89 of the Income Tax Act, 1961, which Rajesh claimed for compensation received due to termination of services. The initial return filed by Rajesh included this claim, which was denied in the intimation under section 143(1) and subsequently in the section 154 petition. The CIT(A) upheld the denial, leading to the present appeal before the Tribunal. The Tribunal, after considering the facts and the specific provisions of section 89, dismissed the appeal, citing the explicit exclusion of relief for amounts received on termination of service under any voluntary retirement or termination scheme.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23478 (ITAT-COCHIN)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2020-2021
• Appeal Filed On: 11-03-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Section: 154; 143(1); 10

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member ITA No. 194/Coch/2024 (Assessment Year: 2020-21) Narayana Swamy Rajesh Flat 8E, 6/217/48 Pranavam Apartments Vaidyanathapuram 678011 [PAN: ARTPR9383B] vs. The Income Tax Officer (Appellant) (Respondent) Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 28.10.2024 Date of Pronouncement: 30.10.2024 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 10.11.2023 for Assessment Year (AY) 2020-21. 2. The assessee is an individual deriving income under the head ‘Salary’. The return of income for AY 2020-21 was filed on 01.10.2020 declaring income of Rs. 7,74,070/-. The assessee also claimed relief us 89 of the Income Tax Act, 1961 (the Act) of Rs. 45,937/- in respect of compensation received towards termination of services from the employer by filing Form 10E on 30.09.2020. The return of income was processed u/s. 143(1) of the Act vide intimation dated 01.02.2021 denying relief us 89 of the Act. After receipt of the intimation, a petition u/s. 154 was filed on 2 ITA No. 194/Coch/2024 Narayana Swamy Rajesh 31.03.2022 with a revised Form 10E by correcting the arithmetical errors. Against the said petition, an order u/s. 154 was issued without amending the intimation. 3. Being aggrieved, an appeal was filed before the CIT(A) who vide the impugned order confirmed the action of the Assessing Officer (AO) by holding that the amount of gross salary mentioned in the Form was not reconciled with the amount mentioned in the return of income. 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. When the appeal was called on, nobody attended despite due service of notice of hearing. Therefore, after hearing the learned Sr. DR I proceeded to dispose of the appeal as under. 5. The solitary issue that arises is whether the CPC was justified in rejecting the relief u/s. 89 of the Act. Undisputedly the relief u/s. 89 was claimed on the compensation received towards termination of services from the employer. Without delving into the reasoning adopted by the AO as well as the CIT(A), while denying the relief u/s. 89, from the facts f the case it is clear that the relief u/s. 89 was claimed in respect of the compensation received on termination of service from the employer. The proviso to section 89 provides that no relief u/s. 89 shall be granted in respect of any amount received on termination of service, which reads as under: - “Provided that no such relief shall be granted in respect of any amount received or receivable by an assessee on his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in sub-clause (i) of clause (10C) of section 10, a scheme of voluntary separation, if an exemption in respect of any amount received or receivable on such voluntary retirement or termination of his service or voluntary separation has been claimed by the assessee under clause (10C) of section 10 in respect of such, or any other, assessment year.” Therefore I do not find any merit in the appeal filed by the assessee. 3 ITA No. 194/Coch/2024 Narayana Swamy Rajesh 6. In the result, appeal filed by the assessee is dismissed. Order pronounced in the open court on 30th October, 2024 Sd/- (Inturi Rama Rao) Accountant Member Cochin, Dated: 30th October, 2024 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "