THE MANDI URBAN CO-OP. BANK LTD.,MANDI vs. ACIT, CIRCLE, MANDI

ITA 1613/CHANDI/2019Status: DisposedITAT Chandigarh08 July 2025AY 2010-11Bench: SHRI RAJPAL YADAV (Vice President), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the entire compensation received on closure of the undertaking, even if styled as VRS, is exempt under Section 10(10B), following previous precedents. The relief under Section 89(1) was revised accordingly.

What were the facts?

The assessee received VRS compensation from HMT Ltd. Initially, a part was claimed exempt under Section 10(10B) and the rest offered to tax with relief under Section 89(1). The assessee contended the entire amount should be exempt as compensation for closure of a division.

What were the issues?

Whether the compensation received on account of closure of a division, styled as VRS, is eligible for exemption under Section 10(10B) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 89(1),Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH

Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 31-03-2022 in the matter of an intimation issued by CPC u/s 143(1) of the Act on 20-11-2017. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. The sole issue that fall for our consideration is assessee’s claim of deduct

The order continues below.

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