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2014 (1) TMI 1703 - AT - Income TaxNon granting exemption u/s 10(10C) - relief u/s 89(1) denied - Held that:- The assessee is an employee of State Bank of India, retired voluntarily as per Exit Option Scheme announced by Bank. In his return of income, the assessee claimed exemption u/s. 10(10C) on ex-gratia received from Bank on his voluntary retirement. The Assessing Officer denied claim of exemption u/s. 10(10C), which was confirmed by the CIT(A). After going through the rival submissions and material on record, we find that this issue is covered by the decision of the Hon’ble Mumbai High Court in the case of Nagesh Devidas Kulkarni Vs. CIT (2007 (4) TMI 205 - BOMBAY High Court ), wherein held that the ex-gratia payment received by the assessee on voluntary retirement is a compensation received on termination of employment and hence the assessee is entitled for the exemption u/s.10(10C) as well as the relief u/s.89(1) in respect thereof. The amount received on voluntary retirement is nothing but profit in lieu of salary within the meaning of that term in section 89(1) and hence such amount is also qualified for relief u/s.89(1) of I.T. Act. In view of this, the Assessing Officer is directed to grant the relief to the assessee. - Decided in favour of assessee.
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