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2010 (1) TMI 961 - AT - Income TaxExemption claimed u/s. 10(10C) - Ex gratia amount received by the assessee - voluntary retirement scheme framed By SBI under the name and style of Exit-Option Scheme - ITO disallowed the Amount Receipt of VRS on the ground of that the scheme framed by SBI is not in accordance with Rule 2BA. HELD THAT:- In appeal, CIT rightly allowed the deduction to the assessee, following the decisions of the High Court in the case of CIT vs. G V Venugopal [2004 (12) TMI 35 - MADRAS HIGH COURT] held second proviso to s. 10(10C) only refers to exemption claimed in any other assessment year. It is well set tled that every assessment year is a self-contained unit. The assessment year in question in the present case is 2001-02 and the exempt ion claimed is in respect of this assessment year, although the exemption granted u/s. 89(1) has been spread over several assessment years. The mere fact that the relief has been spread over several years, does not mean that the relief is not in respect of a particular assessment year. The word ‘ salary ’ as defined in s. 17 includes any profit in lieu of salary, which has been defined in s. 17(3) to include any amount of compensation due or received by the assessee from his employer or former employer in connection with the termination of his employment. Hence, payment under the voluntary retirement scheme is covered by the word ‘ salary ’ , which has been given a very wide definition in s. 17. Since the assessee is covered by s. 89, he will get both the benefits, which he has claimed for. Apart from the above, it is well-settled that if two reasonable interpretations of taxing statutes are possible, the one in favour of the assessee should be accepted.—CIT vs. Naga Hills Tea Co. Ltd.[1973 (2) TMI 6 - SUPREME COURT] applied.” Thus if there is a decision on an issue of any High Court and there is no contrary decision of any other High Court , then in absence of the same, even if there is no decision on the issue of the jurisdictional High Court , the decision rendered by the other High Courts should be respectfully followed by the courts below the High Court. Ground of appeal of the Revenue is dismissed.
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