SH. SOHAN LAL,PINJORE vs. ITO, WARD -3, PANCHKULA

ITA 286/CHANDI/2024Status: DisposedITAT Chandigarh28 August 2024AY 2017-18Bench: SHRI. AAKASH DEEP JAIN (Vice President), SHRI. VIKRAM SINGH YADAV (Accountant Member)21 pages
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What did the Tribunal hold?

The Tribunal held that while the entire compensation was received under VRS, the specific provisions for gratuity (Section 10(10)) and leave encashment (Section 10(10AA)) would govern the exemption for those components, not the general provision for retrenchment compensation under Section 10(10B).

What were the facts?

The assessee received compensation on forced retrenchment under VRS due to the closure of HMT Ltd. The assessee claimed exemption under Section 10(10B) for the entire amount, including gratuity and leave encashment components. The Assessing Officer and CIT(A) had allowed exemption only under specific sections for gratuity and leave encashment.

What were the issues?

Whether gratuity and leave encashment received as part of a VRS compensation package are eligible for exemption under Section 10(10B) or their respective specific sections.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10C),Section 10(10),Section 10(10AA)

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Cases cited in this judgment(1)Show list

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  • 79 Taxmann.com 298
    79 Taxmann.com 298 · 2017 · HC
    6 citing
Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE "ी आकाश दीप जैन, उपा"" एवं "ी िव"म िसंह यादव, लेखा सद" BEFORE: SHRI. AAKASH DEEP JAIN, VP & SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA NO.286/Chd/2024 िनधा"रण वष" / Assessment Year : 2017-18 Shri Sohan Lal बनाम The ITO C/o Dhiman Bansal & Associates Ward-3 68, Shiv Shakti Colony, Pinjore- Panchkula 134102 "ायी लेखा सं./PAN NO: AAGPL4435J अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : Smt. Neelam Dhiman, C.A राज" की ओर से/ Revenue by : Shri Vivek Vardhan, JCIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 26/08/2024 उदघोषणा की तारीख/Date of Pronouncement : 28/08/2024

आदेश/Order PER VIKRAM SINGH YADAV, A.M. :

This is an appeal filed by the Assessee against the order of the Ld. CIT(A) Addl./JCIT(A)-2, Siliguri dt. 25/01/2024 pertaining to Assessment Year 2017-18. 2. In the present appeal, Assessee has raised the following grounds:

1 That on the facts and circumstances of the case the order passed by the learned ADDL/JCIT (A)-2 Siliguri is bad both in the eyes of law and on facts. 2 The learned ADDL/JCIT (A) erred has e

The order continues below.

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