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TMI Blog2014 (7) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... he clause by clause compliance of Rule 2BA submitted by the assessee. Being on merits of the compliance of sec.10(10C) the order of the CIT(A) should be quashed. 2. The Commissioner of Income-tax (Appeals) erred in holding that the employer has denied the benefit u/s 10(10C) to the employee when the facts and clauses contrary to this ere brought out to the notice showing a very clear intention of the employer to grant the benefit to Sec. 10(10C) to the employees. The order of the CIT(A) should be quashed. 3. The Commissioner of Income-tax(Appeals) erred in holding that cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Saha (2009) 125 TTJ (KOL) (TM) (577). The order of the CIT(A) should be quashed. 8. The Commissioner of Income-tax (Appeals) failed to appreciate that the case is squarely covered the decision of Mumbai Tribunal in the case of Manasi Kulkarni ITA No.8766/Mum/2011 order dated 11.9.2013 of SEBI employees. The order of the CIT(A) should be quashed. 9. The Commissioner of Income-tax (Appeals) failed to appreciate that the case is squarely covered the decision of Kolkatta 'B' bench ITA No.1346 and others of 2011 in the case of Uttara Ghosh. The order of the CIT(A) should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see with the Company was for 21.7 years and his age at time of retirement was 46.95 years and number of years left for retirement was 13 years. His eligible salary at time of retirement was Rs. 12,741 per month. Accordingly, amount specified under Rule 2BA was calculated as follows: -Three months salary for each completed year of service comes to Rs. 8,30,605 (Rs. 12,741x21.7x3) -Salary for the balance months of service was Rs. 19,94,623 (Rs. 12.741 x 12x 13) However, the actual amount paid to assessee under VRS was Rs. 20,59,007 which was higher than eligible amount on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o an amount of Rs. 5,00,000/-(Rupees Five Lakhs only). The tax benefit referred to above would be available only to an assessee who has completed 10 years of service in the Company or 40 years of age and has not availed of benefit of similar Voluntary Retirement Scheme in the past. It has been a condition of the Scheme that the vacancy caused by voluntary retirement would not be filled up nor would the retiring Associate be employed in another unit or concern belonging to the Company. The ld. AR has further submitted that a reading of the clauses of the scheme reveals that the Scheme framed was in accordance with the provisions of section 10(10C) of the Income Tax Act. On the other hand the ld. DR has relied upon the decisions of the lower ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10(10c) was inserted in order to make voluntary retirement attractive so as to reduce human compliments for securing economic viability of certain companies. This has to be interpreted in a manner beneficial to the opted for retirement, even if there is any ambiguity. 7. We may observe that the section 10(10C) starts with the words "any amount received or receivable by an employee" whereas the rule 2BA clause 6 has prescribed as limit of such amount. It has been provided in first proviso to section 10(10C) that the schemes under this section are to be framed by the various institutes/companies in accordance with such guidelines as may be prescribed. A careful perusal of the provisions of section 10(10c) when read with rule 2BA of the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10C) to an employee in view of the beneficial nature of the provision keeping in view the purpose and object sought to be achieved through such a provision. We, therefore, are of the view that denial of exemption to the assessee only because he has received compensation on his retirement a little more than the limit prescribed by rule 2BA, will be against the spirit of the provisions of the section 10(10C), especially, when no such limit has been prescribed under section 10(10C) and also in view of our observations that provisions of rule 2BA are not mandatory but in the shape of guidelines which are to be taken into consideration while framing the scheme. 8. In view of our discussion above, the appeal of the assessee is allowed and it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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