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TMI Blog2005 (11) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned CIT(A), Bilaspur dt 28th July, 2005 for the asst. yr. 2003-04 on the following effective grounds: "(1) That the AO has erred in allowing exemption under s. 10(10C) at Rs. 1,40,679 instead of Rs. 5,00,000 which is unjustified. (2) That the AO has erred in not allowing the relief under s. 89(1) on account of VRS amount despite the fact VRS receivable has been taxed as salary income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has filed the present appeal before the Tribunal. 3. Before us, the learned Authorised Representative for the assessee vehemently argued that the learned CIT(A) erred in upholding the action of the AO. He invited our attention to the Circular No. 7 of 2003, dt. 5th Sept., 2003 [(2003) 184 CTR (St) 33] wherein the Explanatory Notes have been given in respect of some provisions of Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed Representative of the assessee. While explaining the provisions in respect of exemption of amount received under VRS compensation allowable even 1f it is receivable or received in instalments, in the circular, it has been clarified as under: "Under the existing provisions contained in cl. (10C) of s. 10, any amount received by an employee of a public sector company or any other company or an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o solve this problem, cl. (10C) of s. 10 has been amended by the Finance Act, 2003 to provide that any amount not exceeding five lakh rupees received or receivable (i.e., even if received in instalments) by an employee on his voluntary retirement or termination of his service will not be included in computing the total income of such employee. Other conditions, as well as the overall limit shall, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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