TMI Blog2010 (11) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... are entitled to claim exemption under section 10(10C) of the Income-tax Act and therefore, the order of the respondent, rejecting the applications for rectification of the assessment order set aside. - Decided in favor of assessee. - 3986 to 3997, 4145 to 4157, 6523, of 2007 - - - Dated:- 3-11-2010 - RAMANATHAN R. S. JJ. JUDGMENT Heard both sides. 2. The petitioners, in all these writ petitions, were employees of ICICI Bank and they are also assessees under the Income-tax Act. The ICICI Bank introduced earlier a retirement option, which is the Voluntary Retirement Scheme and under the scheme, the petitioners opted to retire and received the terminal benefits. The petitioners filed their original return under section 139 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counter, in all the writ petitions, stating that the petitioners are not entitled to exemption on the amount of Rs. 5 lakhs received under the Voluntary Retirement Scheme as per section 10(10C) of the Income-tax Act and therefore, they were not granted exemption under that provision. It is further stated that the rectification application was rejected as the issue involved is a debatable one on which two opinions are possible and therefore, it is not a mistake apparent from the records and it requires elaborate argument. It is, therefore, stated that even if it is a mistake, which requires a complicated process of investigation, argument or proof, it cannot be regarded as mistake apparent from the records and therefore, it was rightly rejec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioners submitted that the matter has been finally decided by the honourable Supreme Court and even though, the honourable Supreme Court has not rendered the judgment, setting aside the order of the Division Bench of this court reported in CIT v. M. Chelladurai [2009] 317 ITR 370 (Mad), at the time of passing of the order, which are impugned in these writ petitions, having regard to the subsequent judgment of the honourable Supreme Court, the impugned orders are liable to be set aside and the petitioners are entitled to get the benefits of exemption under section 10(10C) of the Income-tax Act. In other words, the learned counsel appearing for the petitioners submitted that though the respondent was right in holding that the issue was a deba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out by the learned counsel appearing for the petitioners as well as the learned standing counsel appearing for the respondent that the Division Bench of this court also held in the judgment reported in CIT v. M. Chelladurai [2009] 317 ITR 370 (Mad) referred to above held that exemption under section 10(10C) of the Act cannot be claimed by the employees of the ICICI Bank, who opted to retire under the Voluntary Retirement Scheme of that bank. Therefore, the respondent was right in rejecting the application for rectification on the ground that there is no error apparent on the face of the record and it is a debatable one. However, having regard to the subsequent development viz., the judgment delivered by the honourable Supreme Court in Civi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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