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2012 (9) TMI 19 - BOMBAY HIGH COURTRejection of exemption u/s 10(10C) - assessee retire under the Voluntary Retirement Scheme (VRS) of the SBI - circular dated 6th October, 2009 offering Exit Option Schemes to employees clearly lay out ineligible for deduction under section 10(10C) - Held that:- The said circular merely contains instructions to the authorities to decide the question of eligibility under Section 10(10C) in accordance with law namely the provisions of the Act, the rules made thereunder and all other legal principles including the doctrine of precedent and does not prohibit the authorities from discharging their functions under the Act. It appears that some officers have wrongly considered themselves bound by the circular to the extent of their being required to reject the application under Section 10(10C) merely on the basis thereof and without considering whether in law the assessees are entitled to exemption in view of their having opted for the scheme. This it is clear therefore, that the CIT(A) did not consider the matter on merits. He did not consider the provisions of the Act and the Rules. He merely considered himself bound by the circular and construed the circular as directing him to hold the assessee ineligible for exemption under Section 10(10C) - thus the authorities shall decide the question of exemption under Section 10(10C) without being influenced by the impugned circular dated 6th October, 2009 in any manner whatsoever - in favour of assessee.
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