Naranbhai Jivanbhai Arya, Navsari vs Department Of Income Tax

ACIT, Navsari Circle, Vs Shri Naranbhai Jivanbhai Navsari. Arya, 38, Anand Mangal Society, Kabilpore, Navsari.

PAN: AAKPA 0030A (Appellant) (Respondent)

Revenue by : Shri Dinesh Singh, Sr.D.R. Assessee(s) by : Shri Tushar P. Hemani, A.R.

सुनवाई क तार ख/ Date of Hea ring : 13 /02/201 5 घोषणा क तार ख /Date of P ronouncement: 20/02/2015

आदेश /O R D E R

PER: MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER

This is an Appeal filed by the Revenue arising from the order of the learned CIT(A) Valsad, dated 25.03.2011. The grounds raised are as under:

"1. On the facts and circumstances of the case and in law the ld. CIT(A) Valsad has erred in deleting the addition of Rs.5,00,000/- made on account of disallowance of claim of exemption u/s.10(10C) of the Act.

2. On the facts and circumstances of the case and in law the ld. CIT(A) Valsad has erred in holding that the assessee is entitled to deduction u/s.10(10C), when the scheme under which the amount was paid does not fulfill the criteria prescribed under Rule 2BA of the Income Tax Rules."

ITA No.1745/Ahd/2011 ACIT, Navsari Circle, Navsari Vs. Shri Naranbhai Jivanbhai Arya For A.Y. 2008-09 -2-

2. At the outset, learned AR appearing on behalf of the Assessee stated that the issue is covered in favour of the assessee with series of decisions of various Tribunal and also of ITAT, Ahmedabad pronounced in the case of ITO Vs. Shri Manharlal Namlabhai Patel bearing ITA No.1930/Ahd/2011 dated 08.08.2014, wherein it was held as under:

4. We have considered rival submissions and perused the orders of the AO and the CIT(A), we find that the only issue in this appeal of the Revenue is regarding, exemption under section 10(10C) of the Act in respect of ex-gratia amount of Rs.5,00,000/- received by the assessee, as per the voluntary retirement scheme of the State Bank of India. The issue is covered in favour of the assessee with the decisions of the Tribunal including the decision in ITO Vs. Shri Nalin Natwarlal Shah, (supra) wherein held th the amount received on voluntary retirement as per exit option scheme of State Bank of India, was exempt income under section 10(10C) of the Act. The CIT(A) has followed the decision of the Hon'ble Supreme Court in Chandra Ranganathan & Ors. Vs. CIT, 326 ITR 49 (SC), and decided the issue in favour of the assessee.

Accordingly, the ground of the appeal of the Revenue, being without any merit is dismissed."

3. The learned Sr.D.R., Mr. Dinesh Singh could not controvert to the submissions of the learned AR for the assessee.

4. We have heard both the sides at some length. We have perused the orders of the authorities below. We find that the issue is regarding exemption u/s.10(10C) of the Act in respect of ex gratia amounting to Rs.5,00,000/- received by the assessee as per the voluntary retirement scheme of the State Bank of India. The issue is covered in favour of the assessee with the decisions of the Tribunal including the decision in ITO Vs. Shri Manharlal Namlabhai Patel, (supra) wherein held that the amount received on voluntary retirement as per Exit Option Scheme of State Bank of India, was exempt income under section 10(10C) of the Act. Accordingly, the ground of appeal of the Revenue, being devoid of merit is dismissed.

ITA No.1745/Ahd/2011 ACIT, Navsari Circle, Navsari Vs. Shri Naranbhai Jivanbhai Arya For A.Y. 2008-09 -3-

5. In the result, the Appeal of the Revenue is dismissed.

Sd/- Sd/- (ANIL CHATURVEDI) (MUKUL Kr. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 20/02/2015 Prabhat Kr. Kesarwani, Sr. P.S. आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आयु त / Concerned CIT

4. आयकर आयु त(अपील) / The CIT(A)-III, Ahmedabad

5. वभागीय त न ध, आयकर अपील य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad

6. गाड फाईल / Guard file.

आदेशानुस ार / BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad