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2008 (9) TMI 577 - MADRAS HIGH COURTOptional Early Retirement Scheme floated by the Reserve Bank of India - assessee, claimed exemption under section 10(10C), out of the compensation received under the Scheme - Reserve Bank of India has not deducted the exemption claimed under section 10(10C) on the compensation received under "Optional Early Retirement Scheme", but it has duly deducted tax, treating this compen-sation as fully taxable and remitted to the Government account - Assessee claimed refund - Assessing Officer stated that the Scheme of Optional Early Retirement Scheme does not fulfill the conditions laid down under rule 2BA and hence, the ex gratia paid under the Scheme does not qualify for exemption under section 10(10C), rejected the claim of the assessee - Held that: - the monetary limit prescribed by the Central Board of Direct Taxes for filing appeals before the High Court and it does not also fall within the exceptions provided for filing appeal before the High Court, even where the tax effect is less than Rs. 2,00,000 under Circular F. No. 279/126/98-IT, dated March 27, 2000. Learned counsel appearing on either side fairly stated that the tax effect in all these cases worked out to less than Rs. 2 lakhs - if the tax effect is less than the one stated in the circular the Revenue need not agitate the issue on appeal and the circular is binding on them - appeal is dismissed
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