Tarini Charan Padhi, Nabrangpur v. ITO, Cuttack

ITA 14/CTK/2010 | 2006-2007
Pronouncement Date: 25-01-2011 | Result: Allowed

Appeal Details

RSA Number 1422114 RSA 2010
Assessee PAN AAPPP3851P
Bench Cuttack
Appeal Number ITA 14/CTK/2010
Duration Of Justice 1 year(s) 11 day(s)
Appellant Tarini Charan Padhi, Nabrangpur
Respondent ITO, Cuttack
Appeal Type Income Tax Appeal
Pronouncement Date 25-01-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 25-01-2011
Date Of Final Hearing 16-11-2010
Next Hearing Date 16-11-2010
Assessment Year 2006-2007
Appeal Filed On 13-01-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK () BEFORE . . HONBLE SHRI K.K.GUPTA ACCOUNTANT MEMBER. /AND . . . S HRI K.S.S.PRASAD RAO JUDICIAL MEMBER / I.T.A.NOS. 14 AND 132/CTK/2010 / ASSESSMENT YEAR 1006 - 07 AND 2007 - 08 TARINI CHARAN PADHI COLLEGE ROAD NEW TANK STREET AT/P.O.NAWARANGPUR. PAN : AAPPP 3851 P - - - VERSUS - ITO J EYPORE. GOPINATH PADHI NEAR SIET DHENKANAL. PAN: ADCBP 4458 J - - - VERSUS ITO WARD 1 DHENKANAL. ( /APPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI D.PATI AR / FOR THE RESPONDEN T: / SHRI S.C.MOHANTY DR / ORDER . . SHRI K.K.GUPTA ACCOUNTANT MEMBER. THE ONLY ISSUE COMMON TO BOTH THE APPEALS FILED BY TWO DIFFERENT ASSESSEES IS AGAINST NON - ALLOWANCE OF THE CLAIM OF DEDUCTION U/S.10(10C) OF TH E IT ACT 1961. 2. THE FACTS IDENTICAL IN BOTH THE APPEALS ARE THAT THE RESPECTIVE ASSESSEES ARE FORMER EMPLOYEES OF STATE BANK OF INDIA AND HAVE CLAIMED DEDUCTION UPTO 5 LAKHS U/S.10(10C) FROM EX - GRATIA PAYMENTS ON TAKING VRS. THE ASSESSING OFFICER DISALL OWED SUCH CLAIM ON THE OBSERVATION THAT THE SCHEME IN QUESTION DOES NOT FULFILL THE CONDITIONS PRESCRIBED UNDER RULE 2BA OF THE INCOME - TAX RULES 1962. MATTER WAS CARRIED TO THE FIRST APPELLATE AUTHORITY AND THE LEARNED CIT(A) UPHELD THE ORDERS OF THE ASSES SING OFFICER BY RELYING ON THE DECISION OF HONBLE MADRAS HIGH COURT IN THE CASE OF CIT V. M.CHELLADURAI (176 TAXMAN 31) WHEREIN IT WAS HELD THAT A VRS SCHEME OF / I.T.A.NOS. 14 AND 132/CTK/2010 2 ICICI BANK TO BE INELIGIBLE UNDER 10(10C) FOR FAILURE TO MEET THE CONDITIONS LAID DOWN IN RULE 2BA. 3. HAVING HEARD BOTH THE PARTIES AND GOING THROUGH THE MATERIAL AVAILABLE ON RECORD THE ISSUE IS NOW WELL SETTLED IN VIEW OF THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF CHANDRA RANGANATHAN V. CIT [2010] 326 ITR 49 IN CIVIL APPEAL NO. 69 97 - 7002 OF 2009 DATED OCTOBER 21 2009 (REPORTED AS [2010] 326 ITR 49) AND THE HON'BLE BOMBAY HIGH COURT IN CASE OF CIT V. KOODATHIL KALLYATAN AMBUJAKSHAN [2009] 309 ITR 113. THE REVENUE HAS ACCEPTED THE SAID DECISION OF THE HON'BLE BOMBAY HIGH COURT AS TH E CENTRAL BOARD OF DIRECT TAXES VIDE ITS INSTRUCTION DATED MAY 8 2009 INSTRUCTED THE DEPARTMENT FOR ACCEPTING THE CLAIM OF THE EMPLOYEES OF THE RESERVE BANK OF INDIA UNDER SECTION 10(10C). IT MAY BE MENTIONED HERE THAT THE DECISION OF HONBLE MADRAS HIG H COURT IN CIT V. M.CHELLADURAI (317 ITR 370) AS RELIED ON BY THE LEARNED CIT(A) IN THE PRESENT CASES ON HAND HAS BEEN REVERSED BY HONBLE SUPREME COURT IN THE CASE OF CHANDRA RANGANATHAN V. CIT (SUPRA). FURTHER THE LEARNED COUNSEL FOR THE ASSESSEE RELIE D ON VARIOUS ITAT ORDERS AS WELL AS DECISIONS OF DIFFERENT HIGH COURT COMPILED IN THE PAPER BOOK FILED BEFORE US. THE LEARNED DR HAS REPEATEDLY CLAIMED THAT THE NOTINGS OF THE ASSESSING OFFICER AND THE LEARNED CIT(A) HAVE NOT BEEN CONSIDERED BY THE TRIBUNA L IN THE CITED DECISIONS IS OF NO AVAIL IN VIEW OF THE FACT THAT THE LEGAL ISSUE HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE AND NO EXTRANEOUS MATERIAL HAS BEEN BROUGHT ON RECORD WHICH THE LEARNED DR INSISTED BE CONSIDERED BY THE TRIBUNAL. IT MAY FURTHER BE MENTIONED THAT THE ACTION OF THE EMPLOYER DO NOT DILUTE THE CLAIM OF THE ASSESSEE WHICH HAS BEEN DELIBERATED UPON BY VARIOUS AUTHORITIES BEING HIGH COURTS. T HEREFORE BY FOLLOWING THE DECISIONS OF HONBLE SUPREME COURT HIGH COURTS AND ITAT WE SET ASIDE THE IMPUGNED / I.T.A.NOS. 14 AND 132/CTK/2010 3 ORDERS OF THE LEARNED CIT(A) AND DIRECT THE ASSESSING OFFICER TO ALLOW THE CLAIM OF THE ASSESSEES U/S.10(10C) IN ACCORDANCE WITH LAW. 4. IN THE R ESULT THE APPEALS OF THE RESPECTIVE ASSESSEES ARE ALLOWED . THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT. 25 TH JANUARY 2011 S D/ - S D/ - ( . . . ) ( K.S.S.PRASAD RAO) JUDICIAL MEMBER (. . ) (K.K.GUPTA) ACCOUNTANT MEMBER. () DAT E: 25 TH JANUARY 2011 - COPY OF THE ORDER FORWARDED TO: 1. / THE APPELLANT : TARINI CHARAN PADHI COLLEGE ROAD NEW TANK STREE T AT/P.O.NAWARANGPUR./ GOPINATH PADHI NEAR SIET DHENKANAL. 2 / THE RESPONDENT: ITO JEYPORE . / ITO WARD 1 DHENKANAL. 3. / THE CIT 4. ()/ THE CIT(A) 5. / DR CUTTACK BENCH 6. GUARD FILE . / TRUE COPY / BY ORDER [ ] SENIOR PRIVATE SECRETARY ( ) ( H.K.PADHEE ) SENIOR.PRIVATE SECRETARY.