Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2007 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (12) TMI 260 - AT - Income TaxExemption u/s 10(10C) - Voluntary Retirement Payments - Difference of opinion between the Members - Third Member Order - Validity of opinion expressed by the Chartered Accountant - Reserve Bank of India ('RBI') announced VRS known as Optional Employees Retirement Scheme ('OERS') - assessee opted for OERS - Disallowed - as scheme of early retirement did not fulfil guidelines laid down in rule 2BA of the Income-tax Rules - treated as ex gratia and subjected to deduction of tax at source - ld. Judicial Member agreed with the finding of the ld. CIT(A) - HELD THAT:- ld. Accountant Member opined that the assessee has fulfilled the conditions laid down in rule 2BA of the Income-tax Rules. He also held that finding of the RBI was based upon the opinion given by M/s. Choksi & Co., Chartered Accountants regarding liability of RBI for deduction of tax at source. He was of the opinion that the view taken by the RBI on the opinion of the Chartered Accountants cannot be the sole basis for denying assessee's claim under section 10(10C) of the Act. Accordingly, the ld. AM held that assessee is entitled to exemption under section 10(10C) of the Act. Third Member - ITAT Mumbai Benches has considered similar issue in group cases of 222 assessees who also took Voluntary Retirement from RBI under the same scheme in Vaishali A. Shekar v. Asstt. CIT [2007 (3) TMI 293 - ITAT BOMBAY-K] held that; ''Neither the opinion of the Chartered Accountants nor the views of the RBI will finally determine the fate of exemption that is claimed under section 10(10C) but the satisfaction of the conditions or guidelines laid down by the Income-tax Rules, 1962. A plain reading of section and guidelines of Rule 2BA shows that the scheme in question leaves no doubt in our minds that the sums in question are already exempt under section 10(10C) of the Act up to the extent of Rs. 5 lakhs." No contrary decision is brought to my knowledge. Thus, agree with the ld. AM and hold that the assessee is entitled for exemption under section 10(10C) of the Act amounting to Rs. 5 lakhs out of sum of Rs. 13,52,784 received by him on Voluntary Retirement from RBI. The Hon'ble Vice President has concurred with the views of the ld AM. Thus, in accordance with the majority view, the assessee's appeal is allowed.
|