Shri Satishbhai Bavabhai Patel, Baroda v. The Income tax Officer,Ward-8(1),, Baroda

ITA 1359/AHD/2010 | 2007-2008
Pronouncement Date: 24-08-2010 | Result: Allowed

Appeal Details

RSA Number 135920514 RSA 2010
Assessee PAN ACNPP5284C
Bench Ahmedabad
Appeal Number ITA 1359/AHD/2010
Duration Of Justice 3 month(s) 25 day(s)
Appellant Shri Satishbhai Bavabhai Patel, Baroda
Respondent The Income tax Officer,Ward-8(1),, Baroda
Appeal Type Income Tax Appeal
Pronouncement Date 24-08-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 24-08-2010
Date Of Final Hearing 24-08-2010
Next Hearing Date 24-08-2010
Assessment Year 2007-2008
Appeal Filed On 29-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL : SMC BENCH : AHMEDABA D (BEFORE HON'BLE SHRI T.K. SHARMA JUDICIAL MEMBER ) I.T.A. NO. 1359/AHD./2010 ASSESSMENT YEAR : 2007-2008 SHRI SATISHBHAI BAVABHAI PATEL -VS .- INCOME TAX OFFICER WARD-8(1) VADODARA (PAN : ACNPP 5284 C) VADODARA (APPELLANT) (RESPONDENT) APPELLANT BY : N O N E (WRITTEN SU BMISSION FILED) RESPONDENT BY : SHRI K.M. MAHESH SR. D.R. O R D E R THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE O RDER DATED 22.02.2010 OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-XI BARODA REJ ECTING THE CLAIM OF THE ASSESSEE FOR EXEMPTION UNDER SECTION 10(10C) OF THE INCOME TAX A CT OF RS.4 07 250/- BEING THE VRS AMOUNT. 2. NONE WAS PRESENT ON BEHALF OF THE ASSESSEE WHEN THE CASE WAS CALLED FOR HEARING. HOWEVER WRITTEN SUBMISSION WAS FILED. I THEREFORE DECIDED TO DISPOSE OF THE APPEAL AFTER HEARING THE LD. DEPARTMENTAL REPRESENTATIVE AND THE MATERIA L AVAILABLE ON RECORD. 3. BRIEFLY STATED THE FACTS ARE THAT THE ASSESSEE W AS AN EMPLOYEE OF STATE BANK OF INDIA RETIRED UNDER VOLUNTARY RETIREMENT SCHEME ON 30.04. 2006. ON RETIREMENT HE RECEIVED RS.4 07 250/- AS EX-GRATIA PAYMENT. THIS WAS CLAIME D AS EXEMPT UNDER SECTION 10(10C) OF THE INCOME TAX ACT 1961. IN THE ASSESSMENT ORDER THE ASSESSING OFFICER HAS NOT GRANTED THE EXEMPTION UNDER SECTION 10(10C) OF RS.4 07 250/- AF TER REFERRING THE FOLLOWING CIRCULAR OF THE STATE BANK OF INDIA FOR THIS PURPOSE :- (I) CIRCULAR NO. CDO/P&HRD-PM/8/2005 DATED 29.04. 2005; (II) CIRCULAR NO. CDO/P&HRD-PM-40/2005/06 DATED 1 5.09.2005; (III) CDO/P&HRD-IR/28/2006-07 DATED 31.08.2008. 4. ON APPEAL BEFORE THE LEARNED COMMISSIONER OF INC OME TAX(APPEALS) IT WAS CONTENDED THAT ITAT MUMBAI BENCH ITAT AHMEDABAD BENCH ETC . ALLOWED THE EXEMPTION UNDER SECTION 2 ITA NO. 1359/AHD/2010 10(10C) IN RESPECT OF OTHER EMPLOYEES. THIS PLEA OF THE ASSESSEE WAS NOT ACCEPTED BY THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) ON THE GROUND THAT THOSE DECISIONS ARE IN RESPECT OF DIFFERENT SCHEMES OF DIFFERENT EMPLOYER ORGANIZA TIONS WHERE THE ITAT FOUND MEETING REQUIREMENTS OF RULE 2BA. THOSE DECISIONS CANNOT BE AS IT IS APPLIED TO THE CASE OF THE ASSESSEE WHICH IS GOVERNED BY A DIFFERENT SCHEME OF A DIFFER ENT EMPLOYER ORGANIZATION. AGGRIEVED BY THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS ) THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. ON THE DATE OF HEARING WRITTEN SUBMISSION WAS F ILED WHEREIN IT WAS MENTIONED THAT WITH THE ASSESSEE ONE OF HIS FRIEND ALSO RETIRED FROM S TATE BANK OF INDIA NAMELY SHRI MADHUSUDAN J. GOSWAMI HAVING PAN AEKPG 5961 J. IT WAS STATED THAT BOTH WERE IN THE SAME BRANCH OF SBI AND RETIRED ON THE SAME DAY I.E. 30.04.2006 UNDER THE IDENTICAL SCHEME. IN THE CASE OF MADHUSUDAN J GOSWAMI LEARNED COMMISSIONER OF INCOM E TAX(APPEALS)-XXI AHMEDABAD IN APPEAL NO. CIT(A.)-XXI/77/WARD-15(1)/2009 DATED 20. 11.2009 HAS DECIDED THE ISSUE IN ASSESSEES FAVOUR BY ALLOWING EXEMPTION UNDER SECTI ON 10(10C) OF THE ACT. THE DEPARTMENT HAS FILED THE SECOND APPEAL BEFORE THE ITAT AHMEDABAD VIDE I.T.A. NO. 171/AHD/2010 AND THE ITAT CONFIRMED THE VIEW TAKEN BY THE LEARNED COMMIS SIONER OF INCOME TAX(APPEALS). THEREFORE ONCE THE ORDER IS APPROVED BY THE LEARNE D COMMISSIONER OF INCOME TAX(APPEALS) ON IDENTICAL FACTS IDENTICAL SCHEME ASSESSING OFFICE R BE DIRECTED TO ALLOW THE DEDUCTION UNDER SECTION 10(10C) OF THE ACT. 6. ON THE OTHER HAND SHRI K.M. MAHESH LD. SR. D.R . APPEARING ON BEHALF OF THE REVENUE VEHEMENTLY SUPPORTED THE ORDER OF LEARNED COMMISSIO NER OF INCOME TAX(APPEALS). THE LD. D.R. POINTED OUT THAT ITAT SMC BENCH AHMEDABAD VIDE ORDER DATED 09.02.2010 IN ITA NO. 171/AHD/2010 IN THE CASE OF SHRI MADHUSUDAN JETHIGI RI GOSWAMI DISMISSED THE APPEAL ON THE GROUND THAT THE TAX EFFECT WAS BELOW THE PRESCRIBED LIMIT. HE ACCORDINGLY SUBMITTED THAT THE VIEW TAKEN BY THE LEARNED COMMISSIONER OF INCOME TAX(APP EALS) BE UPHELD IN THE CASE OF THE ASSESSEE. 7. AFTER HEARING THE LD. D.R. I HAVE CAREFULLY GON E THROUGH THE ORDERS OF AUTHORITIES BELOW AS WELL AS THE WRITTEN SUBMISSION OF THE ASSESSEE A ND THE DECISION DATED 12.11.2009 OF LEARNED 3 ITA NO. 1359/AHD/2010 COMMISSIONER OF INCOME TAX(APPEALS)-XXI AHMEDABAD IN APPEAL NO. CIT(A.)-XXI- 77/WD.15(1)/2009-10 IN THE CASE OF SHRI MADHUSUDAN JETHIGIRI GOSWAMI. ADMITTEDLY THE ASSESSEE AND HIS FRIEND SHRI MADHUSUDAN JETHIGIRI G OSWAMI WERE RETIRED FROM THE SAME BRANCH OF STATE BANK OF INDIA ON THE SAME DAY I.E. ON 30. 04.2006. IN THE CASE OF SHRI MADHUSUDAN JETHIGIRI GOSWAMI THE LEARNED COMMISSIONER OF INCO ME TAX(APPEALS) VIDE ORDER DATED 12.11.2009 ALLOWED THE EXEMPTION UNDER SECTION 10(1 0C) OF THE ACT IN RESPECT OF EX-GRATIA PAYMENT AMOUNTING TO RS.4 62 464/-. 7.1. IT IS PERTINENT TO NOTE THAT IN RESPECT OF EMP LOYEES OF STATE BANK OF INDIA THE DEDUCTION UNDER SECTION 10(10C) IS ADMISSIBLE AS HELD BY THE ITAT SMC BENCH AHMEDABAD IN ITA NO. 3276/AHD/2009 IN THE CASE OF ITO VS.- SHRI KANAIYA LAL VADILAL BHAVSAR AHMEDABAD FOR THE ASSESSMENT YEAR 2007-08 VIDE ORDER DATED 29.01.2010 . THEREFORE THE CONTROVERSY INVOLVED IN THE GROUND OF APPEAL IS SQUARELY COVERED IN FAVOUR OF T HE ASSESSEE BY THE DECISION OF COORDINATE BENCH IN THE CASE OF SHRI KANAIYALAL VADILAL BHAVSA R (SUPRA).THEREFORE IT IS HELD THAT THE ASSESSEE IS ENTITLED TO EXEMPTION UPTO 5 LACS UNDER SECTION 10(10C) READ WITH RULE 2BA WHICH WAS WRONGLY REJECTED BY THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS). IN VIEW OF THIS ASSESSING OFFICER IS DIRECTED TO ALLOW THE EXEMPTIO N UNDER SECTION 10(10C) OF THE INCOME TAX ACT OF RS.4 07 250/- AS CLAIMED BY THE ASSESSEE IN RESPECT OF V.R.S. AMOUNT RECEIVED. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. THE ORDER WAS PRONOUNCED IN THE COURT ON 24.08.20 10 SD/- (T.K. SHARMA) JUD ICIAL MEMBER DATED : 24/ 08 / 2010 COPY OF THE ORDER IS FORWARDED TO : (1) THE ASSESSEE (2) THE DEPARTMENT. (3) CIT(A.) CONCERNED (4) CIT CONCERNED (5) D.R . ITAT AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGI STRAR ITAT AHMEDABAD LAHA/SR.P.S.