I.T.A. No. 100004/2014. Case: The Commissioner of Income Tax Vs Maktumsab Abdulsab Ankalagi. High Court of Karnataka (India)
| Case Number | I.T.A. No. 100004/2014 |
| Counsel | For Appellant: Y.V. Raviraj, Adv. and For Respondents: Shashank S. Hegde and Preethi Shashank, Advs. |
| Judges | Mohan M. Shantana Goudar and K. N. Phaneendra, JJ. |
| Issue | Income Tax Act, 1961 - Section 10(10C) |
| Judgement Date | December 15, 2014 |
| Court | High Court of Karnataka (India) |
Judgment:
Mohan M. Shantana Goudar, J.
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The respondent/assessee is a retired employee of State Bank of India, Belgaum; he filed his return of income on 11.06.2008 for the assessment year 2008-2009 by declaring the total income of ` 46,550/-; during the said year, the assessee had exercised option of voluntary retirement under the 'Exit Option' scheme and claimed ex-gratia/compensation amount as determined under Section 10(10C) of the Income Tax Act, 1961. Though the original Authority disallowed the claim of the assessee on the ground that the scheme of State Bank of India did not satisfy the conditions laid down under Rule 2BA of the Income Tax Rules, 1962, the first Appellate Authority has allowed the claim of the assessee by allowing the appeal filed by the assessee. The said order of the first Appellate Authority is confirmed by Income Tax Appellate Tribunal.
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The order of the first Appellate Authority as confirmed by the Income Tax Appellate Tribunal are questioned in this appeal.
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The Court finds that the following two substantial questions of law arise for consideration:
i) Whether the Tribunal is justified in not considering the fact that the Commissioner of Income Tax (Appeals) has erred in ignoring e-circular on 'EXIT OPTION' Scheme issued by the State Bank of India, Corporate Centre, Mumbai wherein, as per Para-10, It is clearly mentioned that no exemption of Ex-gratia from income tax under section 10(10C) of the Income Tax Act, 1961, is intended in that Scheme?
ii) Whether the Tribunal is justified in upholding the findings of the Commissioner of Income Tax (Appeals) that the conditions mentioned in Rule 2BA of the Income Tax Rules, 1962 have been met, ignoring the e-circular of the State Bank of India, as well as the Board's Instruction No. 200/34/2009-IT-I dated 06.10.2009 wherein, it is clearly mentioned that the scheme framed by the State Bank of Patiala and State Bank of India does not lay out eligibility for deduction under section 10(10C)?
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So far as the first question of law is concerned, the Income Tax Appellate Tribunal on facts has concluded that the respondent/assessee has served for a period of more than 10 years...
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