The ITO, Ward-2,, Valsad v. Shri Manilal U.Naik, Valsad

ITA 1541/AHD/2011 | 2008-2009
Pronouncement Date: 23-09-2011 | Result: Dismissed

Appeal Details

RSA Number 154120514 RSA 2011
Assessee PAN ABAPN5163A
Bench Ahmedabad
Appeal Number ITA 1541/AHD/2011
Duration Of Justice 3 month(s) 22 day(s)
Appellant The ITO, Ward-2,, Valsad
Respondent Shri Manilal U.Naik, Valsad
Appeal Type Income Tax Appeal
Pronouncement Date 23-09-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 23-09-2011
Date Of Final Hearing 16-09-2011
Next Hearing Date 16-09-2011
Assessment Year 2008-2009
Appeal Filed On 01-06-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH AHMEDABAD BEFORE SHRI D.K.TYAGI JUDICIAL MEMBEER AND SHRI A. K. GARODIA ACCOUNTANT MEMBER I.T.A. NO.1541 / AHD/2011 (ASSESSMENT YEAR 2008-09) ITO WARD 2 VALSAD VS. SHRI MANILAL U NAIK PLOT NO.42 GOKULDHAM SOCIETY ABRAMA DHARAMPUR ROAD VALSAD PAN/GIR NO. : ABAPN5163A (APPELLANT) .. (RESPONDENT) APPELLANT BY: SHRI VINOD TANWANI SR. DR RESPONDENT BY: NONE DATE OF HEARING: 16.09.2011 DATE OF PRONOUNCEMENT: 23.09.2011 O R D E R PER SHRI A. K. GARODIA AM:- THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORDE R OF LD. CIT(A) VALSAD DATED 24.02.2011 FOR THE ASSESSMENT YEAR 200 8-09. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER: ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON A CCOUNT OF DISALLOWANCE OF EXEMPTION U/S 10(10C) OF THE ACT IN RESPECT OF EX- GRATIA RECEIPT OF RS.5 LACS WITHOUT APPRECIATING TH E FACTS OF THE CASE. IT IS THEREFORE PRAYED THAT THE ORDER OF CIT(A) BE SET ASIDE AND THAT OF THE A.O. BE RESTORED. 3. THE BRIEF FACTS OF THE CASE TILL THE ASSESSMENT STAGE ARE NOTED BY LD. CIT(A) IN PAR 4.1 OF HIS ORDER WHICH IS REPRODUCED BELOW: WHILE REJECTING THE CLAIM OF THE APPELLANT U/S 10( 10C) OF THE ACT THE A.O. OBSERVED THAT THE APPELLANT WAS UNDER EMPL OYMENT OF I.T.A.NO. 1541 /AHD/2011 2 STATE BANK OF INDIA DURING THE YEAR UNDER CONSIDERA TION HE RETIRED UNDER EARLY EXIT SCHEME OF THE BANK AND SHE RECEIVE D SALARY ALONG WITH VOLUNTARY RETIREMENT BENEFITS. THE APPELLANT CLAIMED EXEMPTION U/S 10(10C) OF THE ACT OF RS.5 LACS THOU GH HE HAS OPTED THE VOLUNTARY RETIREMENT UNDER EARLY EXIT OPTION SC HEME. THE A.O. FURTHER OBSERVED THAT THE RETIREMENT BENEFIT U NDER EARLY EXIT OPTION SCHEME IS NOT ELIGIBLE FOR THE BENEFIT U/S. 10(10C) OF THE ACT AS THE SAME HAS NOT BEEN FRAMED IN ACCORDANCE WITH RULE 2BA OF THE I T RULES. ACCORDINGLY THE A.O. REJECTED THE CLAIM OF THE APPELLANT U/S 10(10C) OF THE ACT FOR RS.5 LACS. 4. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER BEFORE LD. CIT(A) WHO DELETED THIS ADDITION BY FOLLOWING VARIOUS DECI SIONS WHICH ARE NOTED BY HIM IN PARA 4.4 OF HIS ORDER AND NOW THE REVENU E IS IN APPEAL BEFORE US. 5. NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF THE NOTICE AND HENCE WE PROCEED TO DECIDE THIS APPEAL OF THE REVE NUE EX-PARTE QUA THE ASSESSEE. 6. LD. D.R. SUPPORTED THE ASSESSMENT ORDER. 7. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD. D. R. OF THE REVENUE AND HAVE GONE THROUGH THE ORDER OF AUTHORITIES BELO W. WE FIND THAT THE LD. CIT(A) HAS FOLLOWED THE TRIBUNAL DECISION RENDE RED IN THE CASE OF CIT(A) VS KRISHNA GOPAL SAHA AS REPORTED IN 125 TTJ 571 (KOL.) (3 RD MEMBER) AND HE HAS ALSO FOLLOWED THE JUDGMENT OF HO NBLE BOMBAY HIGH COURT RENDERED IN THE CASE OF CIT VS NAGESH DE VIDAS KULKARNI & ORS 291 ITR 407 (MUM.). LD. D.R. OF THE REVENUE CO ULD NOT SATISFY US THAT THESE TWO JUDGEMENTS ARE NOT APPLICABLE IN THE PRESENT CASE. NO CONTRARY JUDGMENT HAS BEEN BROUGHT TO OUR NOTICE AN D HENCE WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF LD. CI T(A) ON THIS ISSUE. 8. MOREOVER THE APPEAL OF THE REVENUE IS NOT MAINT AINABLE FOR ONE MORE REASON I.E. LOW TAX EFFECT. IN THE PRESENT CA SE THE DISPUTE IS ONLY REGARDING CLAIM ALLOWED BY LD. CIT(A) U/S 10(10C) T O THE EXTENT OF RS.5 I.T.A.NO. 1541 /AHD/2011 3 LACS AND THEREFORE TAX EFFECT CANNOT BE IN EXCESS OF RS.2 LACS AND HENCE AS PER THE BOARDS INSTRUCTION NO.2/2005 DATED 24.1 0.2005 THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE FOR LOW TAX EFFECT ALSO. 9. IN THE RESULT APPEAL OF THE REVENUE STANDS DISM ISSED. 10. PRONOUNCED IN THE OPEN COURT ON 23 RD SEP. 2011. SD./- SD./- (D.K. TYAGI) (A. K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED : 23.09.2011 SP COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR AHMEDABAD BY ORDER 6. THE GUARD FILE AR ITAT AHMEDABAD 1. DATE OF DICTATION 20/9 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 21/9 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P .S./P.S.22/9 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 23/9 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.23/9 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 23/9/2011 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 9. DATE OF DESPATCH OF THE ORDER. ..