9911796707
TMI Blog2013 (10) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... erroneously. "1. Whether the Tribunal was correct in holding that the assessee is entitled to claim deduction of expenditure incurred on voluntary retirement scheme under Section 35DDA of the Act when the voluntary retirement scheme is not in conformity with 2BA of the Rules ? 2. Whether the Tribunal was correct in holding that compliance of Rule 2BA for voluntary retirement scheme is only for benefit under Section 10(10C) of the Act and the same is not mandatory for deduction in the hands of employer under Section 35DDA of the Act." 3. Brief case of the respondent - assessee is that it is a Public Sector Bank with registered office at Bangalore and the assessment year in question is 2007-2008. The respondent - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is is a case where the scheme is covered under Section 35DDA of the Act; that a condition imposed in Rule 2BA of the Rules with reference to the recipient of the amount under voluntary retirement scheme for the purpose of Section 10(10C) of the Act is not attracted to the provisions of Section 35DDA of the Act and therefore, noticing that under the provisions of Section 35DDA of the Act, the entire amount cannot be allowed as deduction, but it can be spread over for a period of five assessment years and in the order of catering the expenditure by 1/5th can be allowed and the balance to be spread over the following four assessment years and allowed the appeal to this extent and disposed of the appeal holding that the assessee can claim 1/5th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the meaning of clause (g) of section 3 of the Institutes of Technology Act, 1961 (59 of 1961); or [(viia) any State Government; or] [(viib) the Central Government; or] [(viic) an institution, having importance throughout India or in any State or States, as the Central Government may, by notification in the Official Gazette, specify in this behalf; or] (viii) such institute of management as the Central Government may, by notification in the Official Gazette, specify in this behalf,] [on his] [ voluntary retirement or termination of his service, in accordance with any scheme or s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed in respect of the expenditure mentioned in sub-section (1) under any other provision of this Act." "(Guidelines for the purposes of section 10(10C) Rule 2BA: The amount received by an employee of (i) a public sector company; or (ii) any other company; or (iii) an authority established under a Central, State or Provincial Act; or (iv) a local (authority; or) (v) a co-operative society; or (vi) a University established or incorporated by or under a Central, State or Provincial Act and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany or of a co-operative society;) (iii) the scheme of voluntary retirement (or voluntary separation) has been drawn to result in overall reduction in the existing strength of the employees; (iv) the vacancy caused by the voluntary retirement (or voluntary separation) is not to be filled up; (v) the retiring employee of a company shall not be employed in another company or concern belonging to the same management; (vi) the amount receivable on account of voluntary retirement (or voluntary separation) of the employee does not exceed the amount equivalent to (three months) salary for each co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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