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2020 (7) TMI 193 - AT - Income TaxNon granting deduction towards payment on account of Voluntary Retirement Scheme (VRS) relating to employees of its Calcutta unit - HELD THAT:- Assessee paid the above sum towards VRS of certain employees of Calcutta unit. It is noticed that similar issue came up for consideration before the Tribunal in assessee‟s own case for the immediately succeeding assessment year. Vide order [2010 (3) TMI 1171 - ITAT MUMBAI] the Tribunal has decided it in favour of the assessee. Revenue carried the matter before the Hon’ble Bombay High Court against the said order of the Tribunal. Vide judgment [2013 (6) TMI 227 - BOMBAY HIGH COURT] Hon’ble Bombay High Court dismissed the appeal of the Revenue. A copy of the judgment is available on record. It is seen that section 35DDA has been inserted by the Finance Act, 2001 providing for amortization of expenditure incurred on Voluntary Retirement Scheme. The assessment year under consideration is prior to the insertion of section 35DDA and hence cannot rule the position. The instant year would be governed by the earlier provisions. - Decided in favour of assessee.
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