PRADIP KUMAR PAL,BURDWAN vs. ITO, WD-2(3), ASANSOL, ASANSOL

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ITA 1472/KOL/2014Status: DisposedITAT Kolkata15 March 2017AY 2010-20113 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the voluntary retirement compensation was paid and included in the assessee's income in AY 2010-11, making the exemption claim valid for that year. The absence of the exemption in Form 16 was not a basis for disallowance.

What were the facts?

The assessee claimed exemption under Section 10(10C) for voluntary retirement compensation in AY 2010-11. The Assessing Officer and CIT(Appeals) disallowed this, stating it should have been claimed in AY 2009-10.

What were the issues?

Whether the exemption under Section 10(10C) for voluntary retirement compensation is allowable in the assessment year the payment was received and accounted for, even if not reflected in the employer's Form 16 for that year.

Which sections of the Income-tax Act were involved?

Section 10(10C),Section 143(1),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘B(SMC

Before: Shri P.M. Jagtap

This appeal filed by the assessee is directed against the order of ld. Commissioner of Income Tax (Appeals), Asansol dated 22.04.2014 and the solitary issue arising out of the same relates to the disallowance of assessee’s claim for exemption of Rs.5,00,000/- under section 10(10C) of the Income Tax Act, 1961.

2.

The assessee in the present case is an individual, who was working as Deputy Manager (Finance), ISP, Ramnagar Colliery. He was released from the service of the Company with effect from 28th February, 2009 on voluntary retirement. In the return of income filed for the year under consideration, exemption of Rs.5,00,000/- was claimed by the assessee under section 10(10C) of the Act for the amount received on voluntary retirement. While processing the return of income filed by the assessee, ./2014 Assessment year: 2010-2011 Page 2 of 3 the said claim of the assessee was disallowed. The assessee, therefore, moved an application under section 154 for rectification of the intimation issued under section 143(1). While rejecting the said application, the Assessing Officer held that the assessee having released from the service on 28.02.2009 on voluntary retirement, exemption under section 10(10C) was allowable in A.Y. 2009-10 and not in A.Y. 2010-11. He also noted that in Form No. 16 issued for A.Y. 2010-11, no exemption under section 10(10C) was shown by the employer. Accordingly, the application filed by the assessee claiming exemption under section 10(10C) by way of rectification under section 154 was rejected by the Assessing Officer vide an order dated 17.06.2011.

3.

Against the order passed by the Assessing Officer under section 154, an appeal was preferred by the assessee before the ld. CIT(Appeals), who upheld the order passed by the Assessing Officer under section 154 and dismissed the appeal of the assessee by holding that the claim for exemption under section 10(10C) was made by the assessee wrongly for A.Y. 2010-11 instead of A.Y. 2009-10. Aggrieved by the order of the ld. CIT(Appeals), the assessee has preferred this appeal before the Tribunal.

4.

I have heard the arguments of both the sides and also perused the relevant material available on record. The ld. counsel for the assessee has placed on record the copies of Form No. 16 issued by the employer for A.Ys. 2009-10 and 2010-11, which clearly show that the amount on voluntary retirement was not only paid by the employer to the assessee in the previous year relevant to A.Y. 2010-11, but the same was also included in his total income and tax was also deducted in A.Y. 2010-11. The assessee, in my opinion, thus was entitled to claim the exemption under section 10(10C) for A.Y. 2010-11 as claimed and not in A.Y. 2009- 10 as held by the authorities below. Moreover, a mere fact that the exemption under section 10(10C) was not shown by the employer in Form No. 16 issued for A.Y. 2010-11, in my opinion, cannot be the basis for disallowing the claim of the assessee and that too while processing his ./2014 Assessment year: 2010-2011 Page 3 of 3 return of income under section 143(1). I, therefore, set aside the impugned order of the ld. CIT(Appeals) on this issue and direct the Assessing Officer to allow the claim of the assessee for exemption under section 10(10C).

5.

In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on March 15, 2017.

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