TMI Blog2010 (9) TMI 1098X X X X Extracts X X X X X X X X Extracts X X X X ..... s 10(10C) of the Act. 2. We find that the jurisdictional High Court in the case of CIT Vs. Koodathil Kallyatan Ambujakshan (2009) 309 ITR 113 wherein the amount received under optional early retirement scheme, which is floated by RBI was held to be applicable to all the employees who have served for 25 years and had attained the age of 50 years. It was aimed at reduction in the existing stre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord would indicate that the employees had been rendered surplus on account of various steps taken by the employer. The scheme, therefore, was meant for an overall reduction in the existing strength of the employees. The third requirement is also, therefore, satisfied. The fourth requirement was the vacancy caused by the voluntary retirement or voluntary separation is not to be filled up. A findin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the RBI is a statutory body created under an Act there is no other company or concern belonging to the same management. The fifth requirement has also been satisfied. The sixth requirement has also been satisfied as in the instant case what is offered is two months salary for each completed year of service. Thus the scheme expressly or impliedly satisfied all the requirements of the section as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2BA. The Court is not precluded to consider the issue irrespective of the CBDT circular. On examination of the issue it would be clear that the guidelines have to be read in conformity with the, statutory provisions. On the facts in the instant case, the Tribunal has recorded a finding that the predicates of the rule have been satisfied. On a proper construction of the rules that the scheme itself ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o following the same reasoning, I am not inclined to concur with the findings of the CIT(A). In the facts and circumstances, I find that the optional early retirement scheme of SBI also satisfied the conditions of rule 2BA. Accordingly, I hold that the receipts thereunder were eligible for exemption u/s 10(10C) of the Act. 5. In the result, the appeal is allowed. Pronounced in the open court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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