Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 1176 - AT - Income TaxEligibility of relief u/s 89 r.w. Rule 21A of I.T. Rules - compensation received by the assessee as only salary received in advance OR or as 'compensation on termination of employment' - case selected for limited scrutiny - assessee has submitted Form 10E in support of his claim of relief u/s 89(1), along with copy of Form 16 issued by the employer, Century Textiles and Industries Ltd.- 'Company', after incurring heavy losses shut down its Worli Textile Mill unit in 2008. Around 6,300 of its 6600 of the mill workers opted for the voluntary retirement scheme, assessee is one of the 275 who opposed the closure of the mill and did not opt for the VRS scheme declared by the Company - admissibility of assessee's claim of treating the amount paid by the Company as 'salary in advance' or as 'compensation on termination of employment' would determine whether the mode of computation of relief u/s,89(1) falls under sub-rule (2) or sub-rule (4) of Rule 21A. HELD THAT:- We find that this issue is no longer res integra in view of the Co-ordinate Bench decision of this Tribunal in the case of Rajesh Shantaram Chavan [2022 (4) TMI 1179 - ITAT MUMBAI] as decided to treat the compensation received by the assessee as only salary received in advance. Therefore, we direct the AO to allow the claim of the assessee u/s. 89 r.w. Rule 21A of I.T. Rules. Accordingly, the appeal filed by the assessee is allowed.
|