TMI Blog2007 (10) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Appeal No.141 of 2006 (CIT v. T. K. Paliwal on February 19, 2007 (since reported in [2010] 322 ITR101(Raj), the Division Bench held thus (page 103): "5. That the amount received by the assessee on voluntary retirement is covered by section 17(3)(i) of the Income-tax Act, 1961, cannot be doubted. 'Profits in lieu of salary' includes the amount of any compensation received by an assessee from his employer in connection with the termination of his employment. Cessation of employment because of voluntary retirement is also the termination of employment and the amount of the compensation received by the assessee from the employer in connection thereto is covered by 'pro fits in lieu of salary'. 6. Before the Income-tax Appellate Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is held that the amount received by the assessee on voluntary retirement under voluntary retirement scheme is covered by section 17, we see no impediment in the assessee getting benefit of section 89 of the Income-tax Act irrespective of the amount up to Rs. 5 lakhs being exempt under section 10(10C). The relief under section 89 of the Income-tax Act is entirely different and cannot be denied merely because an amount up to Rs. 5 lakhs received on voluntary retirement is exempted under section 10(10C). Section 89 of the Income-tax Act operates in a different field and the relief given to an assessee under section 89 is for different purpose and cannot be mixed up with the exemption given under section 10(10C). Cause (viii) of section 10(10C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided under section 89 of the Income-tax Act, 1961. The said principle rendered by this court in the case of resignation would equally apply to the case of voluntary retirement of an employee from service. Accordingly, the Appellate Tribunal was right in holding that the amount received by the employee at the time of voluntary retirement of service would be regarded as salary, and the relief under section 89 of the Income-tax Act, 1961, would be admissible in respect of the amount received by the assessee from his employer at the time of voluntary retirement.' 10. The legal position exposited by the Madras High Court does not get changed because of the provision contained in section 10(10C). 11. In this view of the matter, the finding o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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