TMI Blog2008 (8) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... emise that not only the tax effect involved was below the sum fixed in the circular but also the other qualifications prescribed therein were also not available to carve out and bring the case outside the purview of the circular - 1099 and 1102 of 2008 - - - Dated:- 1-8-2008 - K. RAVIRAJA PANDIAN and P. P. S. JANARTHANA RAJA JJ. Tax Case (Appeal) Nos. 1099 and 1102 of 2008 and M. P. No. 1 in T. C. Nos. 1099 and 1102 of 2008. J. Naresh Kumar for the appellant. JUDGMENT The judgment of the court was delivered by K. RAVIRAJA PANDIAN J. - These appeals are at the instance of the Revenue against the order of the Income-tax Appellate Tribunal, Madras "B" Bench, Chennai, dated September 21, 2007, passed in I. T. A. Nos.13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llate Tribunal was right in law in holding that the assessee is eligible for the benefit of section 10(10C) without even going into the details of the Optional Early Retirement Scheme to see if it fulfils the criteria laid down for voluntary retirement scheme ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that the assessee is entitled to deduction under section 10(10C) when the scheme under which the amount was paid does not fulfil the criteria prescribed under rule 2BA of the Income-tax Rules ?" 3. It is contended by learned counsel for the Revenue that this court on earlier occasion considered the scheme and held that the scheme is not in conformity with rule 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that, the schemes are the outcome to fulfil the desire of the employees, who found the competitive environment too pressurizing to them and expressed their desire to have an early exit with some benefits. It is also relevant to mention here that during the relevant period a private scheduled bank merged with ICICI Bank Ltd. 16. From the reading of various clauses contained in the scheme, it is manifest that the scheme was not intended as staff reduction measure, but a soft exit option made available to those interested employees who were seeking alternative option to the level of adaptability and change, that the current environmental demands or those who are desirous of early retirement after a long and exhaustive period of service with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k to make need based recruitment against such vacancies, if and when considered appropriate by the bank. (e) Under the bank's scheme, the employee was eligible for ex gratia amount equal to pay plus dearness allowance for the number of years of actual completed year of service or part thereof in excess of six months or pay plus dearness allowance for remaining months of service reckoned up to the date on which the employee would retire on superannuation, whichever is less. Accordingly, in view of the differences between the Bank OERS and the guidelines laid down in rule 2BA of the Income-tax Rules, the ex gratia paid under the bank's scheme does not qualify for exemption under section 10(10C) of the Income-tax Act, As such the bank has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2000, in T. C. No. 222 of 2004 dated August 16, 2007 ( CIT v. Associated Electrical Agencies [2007] 295 ITR 496) and rejected the appeal filed by the Revenue on the premise that not only the tax effect involved was below the sum fixed in the circular but also the other qualifications prescribed therein were also not available to carve out and bring the case outside the purview of the circular. In the present appeals also, not only the tax effect is less than the amount stated in the circular and the other exceptions prescribed were also not available Hence, following the decision of this court dated August 16, 2007, made in CIT v. Associated Electrical Agencies [2007] 295 ITR 496, T. C. No. 222 of 2008 these appeals are dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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