Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 303 - AT - Income TaxDisallowance of exemption claimed u/s 10(10B) - amount paid to the employer on resignation - compensation on retrenchment from the job or ex-gratia payment - Held that:- As decided in Vishnu Mohan T. Nair Vs. ITO [2018 (1) TMI 324 - ITAT AHMEDABAD] the conditions of section 10(10B), so far as eligibility for exemption is concerned, is satisfied. That, however, is not the end of the matter. As regards the amount eligible for exemption under section 10(10B), it is specifically provided in the aforesaid section that the amount eligible for exemption will be the least of (i) actual amount received by the assessee; (ii) the amount specified by Central Government i.e. ₹ 5,00,000; and (iii) an amount calculated in accordance with the provisions of clause (b) of Section 25F of the Industrial Disputes Act, 1947 i.e. 15 day’s average pay for every completed years of services or part thereof in excess of 6 months. One of the important restrictions on the amount eligible for exemption under section 10(10B) is that it should not exceed fifteen days’ average pay for every completed years of services or part thereof in excess of six months This aspect of the matter has not been examined at all. Therefore, uphold the claim in principle but remit the matter to the file of the AO for examination of the quantification part in the light of the above observation.
|