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2012 (12) TMI 289 - ITAT BANGALOREInitiating proceedings u/s 263 - Disallowance of payments made under Exit Option Scheme(VRS) as Employee welfare measure - held that:- It is eligible for deduction u/s 35DDA of the Act and accordingly, the appellant shall be eligible for 1/5th of the total expenditure as deduction in assessment year 2007-08 and the balance in subsequent four assessment years. further it was clarified that compliance with Rule 2BA is not mandatory in such cases. It was, therefore, found that the deletion of conditionalities originally incorporated in the Bill showed that legislative intendment was not to incorporate all the conditions of section 10(10C) in section 35DDA. Finally, the Legislature left the scheme of voluntary retirement open-ended and did not place any restriction on the scheme. Thus, plain language of the provision supports the case of the assessee. Assessing Officer directed to allow 1/5th of Rs. 7,09,56,323.23 as deduction under section 35DDA for the concerned assessment year. Decision in CIT Versus SONY INDIA PVT. LTD. [2012 (6) TMI 286 - ITAT DELHI] Followed.
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