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2016 (2) TMI 823 - AT - Income TaxRectification application u/s 154 to claim exemption - Entitlement to the benefit of deduction u/s.10(10C) - RBI employees retiring under OERS - Held that:- The issue whether deduction u/s.10(10C) of the Act should be allowed to RBI employees retiring under OERS is no longer res integra and has been concluded in several decisions including the decision in the case of CIT Vs. Koodathil Kaliyatan Ambujakshn (2008 (7) TMI 259 - BOMBAY HIGH COURT). In fact the CBDT in Instruction dated 8.5.2009 has accepted this decision and opined that employees of RBI who accepted OERS would be entitled to the benefit of Sec.10(10C) of the Act. In view of the above, we hold that the claim for deduction u/s.10(10C) of the Act has to be allowed to the Assessee. The fact that the Assessee voluntarily offered the sum in question to tax cannot be the basis to sustain the levy of tax. Therefore hold that there was a mistake apparent on the face of the record and the application u/s.154 of the Act filed by the Assessee ought to be allowed. Thus direct the AO to allow deduction accordingly. - Decided in favour of assessee
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